Published: Thursday September 17, 2009 MYT 3:16:00 PM
Updated: Thursday September 17, 2009 MYT 3:25:03 PM
CME to acquire 25% stake in Bursa’s derivatives business
PETALING JAYA: Bursa Malaysia Bhd (Bursa) and the Chicago Mercantile Exchange Group Inc (CME) has entered into a strategic partnership whereby the latter will acquire a 25% stake in Bursa Malaysia Derivatives for RM55 million.
According to a statement to the stock exchange filed by CIMB Investment Bank Bhd on behalf of Bursa, the acquisition would be satisfied via RM1.9 million cash and the remainder by CME shares.
Bursa chief executive officer Datuk Yusli Mohamed Yusoff said at a press conference in Kuala Lumpur Thursday that the CME shares would make Bursa a “small shareholder” in the world’s biggest derivatives market. CME’s market capitalisation is about US$20 billion.
Besides the equity stake, the partnership would include the licensing of Bursa’s crude palm oil futures settlement price and the provision of CME Globex services. CME Globex is an electronic trading platform.
About 12 million contracts are traded daily on CME exchanges, of which over 80% of daily volume trading is on the CME Globex platform.