The Exchange And The Bank Agree To Work Together And Consider Strategic Business Opportunities
NYSE Euronext and Bank of China sign memorandum of understanding
Beijing, London - 17, October 2012 – NYSE Euronext (NYX) and Bank of China Limited (Bank of China) today signed a Memorandum of Understanding (MoU) to work together and consider mutually beneficial business ventures.
The agreement will strengthen NYSE Euronext’s banking relationship with Bank of China; and the Exchange will provide guidance to Bank of China which will establish itself as a General Clearing Member of the London market of NYSE Liffe (NYSE Euronext’s European derivatives market).
With the increased importance of the renminbi (RMB) in the capital markets, both parties will work together to develop and launch RMB denominated products and explore the potential for RMB to be used as collateral for NYSE Euronext’s new London Central Counterparty (CCP).
The Exchange has experienced an increase in demand for its products in China and this strategic alliance will support NYSE Euronext and Bank of China working in partnership to:
- Facilitate more trading flow from China into NYSE Euronext’s markets;
- Establish potential distribution channels for NYSE Euronext’s ETP products through Bank of China’s network; and
- Review other mutually beneficial commercial opportunities as well as sharing resources and best practices.
“Asia is a core market and strategic priority for NYSE Euronext. Flows from the region continue to build liquidity in our existing markets and our non-Asian customers are devoting significant thought into how they can connect to these exciting markets,” said Mr. Dominique Cerutti, President and Deputy CEO, NYSE Euronext. “We are delighted to be working with Bank of China to help develop business activity into and out of Asia; and their support in developing RMB products and services will be invaluable for our global community.”
“Bank of China’s UK subsidiary is to become a General Clearing Member of NYSE Euronext’s London derivatives market. Both parties acknowledge the potential of working together to develop and promote RMB-related trading products,” said Mr. YUE Yi, Executive Vice President of Bank of China. “I believe the signing of the MOU between NYSE Euronext and Bank of China is marking a new starting point for the overall cooperation between the two institutions.”
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets - the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca - represent one-third of the world’s equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index. For more information, please visit: http://www.nyx.com.
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext's plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext's results to differ materially from current expectations include, but are not limited to: NYSE Euronext's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext's 2011 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.
About Bank of China
Bank of China has the longest operating history in China, and is the most internationalized bank in the country. With a century of dedication to growth, Bank of China has become a large multinational banking group, with a total asset of more than USD 2 trillion and with a network of more than 10 thousand branches in China and 35 other countries. Bank of China group serves global clients with full range of high-quality and high-efficiency products and services, which cover commercial banking, investment banking, direct investment, insurance, fund management and aircraft leasing. In 2006, Bank of China launched successful IPOs on both HK and Shanghai securities exchanges, making it the first Chinese bank listed in both overseas and domestic markets. According to the Bankers magazine, Bank of China was ranked the ninth largest bank in the world in terms of Tier-one capital. It is also the only name recognized as one of the 29 Global Systemically Important Banks from China and even from the emerging markets.