The China Financial Futures Exchange this week sealed agreements with four Western exchange operators, aiming to tap the expertise of established markets following a surge in trading volume.

CME Group Inc. (CME), Deutsche Boerse AG (DB1.XE, DBOEF), NYSE Euronext (NYX) and CBOE Holdings Inc. (CBOE) signed so-called memorandums of understanding with CFFEX, geared toward sharing data and developing new derivatives markets.

The CFFEX is the youngest and smallest of the four Chinese futures exchanges, but volume has soared in recent months. About 20.5 million contracts traded on its platform over the first three months of 2012, up 74% from the prior-year level, according to figures compiled by the Futures Industry Association, a U.S.-based trade group.

The expansion at the CFFEX comes as Chinese government authorities, who control the country's financial exchanges, have implemented, over the past year and a half, rules designed to curb derivatives trading activity in the country.

The all-electronic CFFEX was founded by the Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange in 2006. Trading didn't start until 2010 in the exchange's sole product, futures on the benchmark CSI 300 stock index.

Overseas-based exchange operators long have sought closer ties with mainland Chinese markets, particularly in the derivatives sector.

Exchanges have touted such memorandums of understanding as a means of spreading their influence to developing markets and a way to develop deeper partnerships with local regulators and customers. Such arrangements, however, have a mixed track record when it comes to producing meaningful alliances or joint ventures, and some have been allowed to expire.

NYSE Euronext and CBOE both announced MOUs with the CFFEX Wednesday. CME and Deutsche Boerse have completed similar pacts, according to persons familiar with the matter.

The agreements generally involve the exchanges exploring opportunities for information sharing; cross-trainining of employees and cooperation on joint research into developing strategies for the derivatives market, according to announcements Wednesday.

"This agreement deepens our long term commitment to the region, and by sharing best practices and working collaboratively, CFFEX and NYSE Euronext will further promote the development and advancement of both the Asian and global financial markets," said NYSE Euronext Chief Executive Duncan Niederauer.

The new pledges to collaborate follow an earlier memorandum between the CFFEX and Hong Kong Exchanges and Clearing Ltd. (0338.HK) signed in January, the first such bridge established by the CFFEX.

-By Jacob Bunge and Melodie Warner, Dow Jones Newswires; 312 750 4117; jacob.bunge@dowjones.com; Twitter: @jacobbunge

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