By David Pearson
PARIS--Stock market operator NYSE Euronext (NYX) said Wednesday
it intends to work with the Bank of China (3988.HK) to take
advantage of the increasing importance of the renminbi in capital
markets by jointly developing renminbi-denominated financial
products.
The two institutions will explore the potential for RMB to be
used as collateral for NYSE Euronext's new London Central
Counterparty, or CCP, according to the memorandum of understanding,
NYSE Euronext said in a statement.
It said the agreement will strengthen NYSE Euronext's banking
relationship with Bank of China, and NYSE Euronext 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).
NYSE Euronext said it has experienced increased demand for its
products in China and the alliance will allow it to work with Bank
of China to facilitate more trading flow from the country into NYSE
Euronext's markets. It will also be able to establish potential
distribution channels for NYSE Euronext's ETP products through Bank
of China's network.
The two partners will review other mutually beneficial
commercial opportunities as well as sharing resources and best
practices, NYSE Euronext said.
Write to David Pearson at david.pearson@dowjones.com