Development and Cooperation of Futures Market under “One Belt and One Road Strategy”

• Good afternoon ladies and gentlemen.
  
• It is my pleasure to be here today at the 12th Shanghai Derivatives Market Forum (SDMF), jointly hosted by the Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, and China Financial Futures Exchange, with the support of China Futures Market Monitoring Center and China Futures Association.

• I am William Knottenbelt - Senior Managing Director, International, for CME Group – responsible for the Group’s business in Europe, Middle East, Africa, Asia and Latin America.

• All of us in this room would have undoubtedly witnessed that over the past decade, the epicenter of global economic growth and activity has been shifting from the developed nations to the emerging economies.

• When Chinese President Xi Jinping visited Central Asia and Southeast Asia in September and October of 2013, he raised the initiative of jointly building the Silk Road Economic Belt and the 21st Century Maritime Silk Road, subsequently referred to the Belt and Road initiative, which have attracted close attention from all over the world.

• Through the Belt and Road initiative, the Chinese government has signaled its intent to promote the implementation of this Initiative, instill vigour and vitality into the ancient Silk Road, connect Asian, European and African countries more closely and promote mutually beneficial cooperation to a new high and in new forms.

• Economic growth in emerging markets such as China has been driven by the fundamental productivity of the nation’s vast population

• China grew at a 10% annual real GDP clip for almost thirty years on the back of massive spending on infrastructure, modernizing at a pace never seen before.  The fruits of success, however, mean that additional infrastructure spending has hit the wall of diminishing returns.  This means that the old policy tools will not pack the punch they once did.

• However, the economists at CME Group do not anticipate anything like a recession in China.  The PBOC has been easing policy by reducing its reserve requirement ratio for banks and cutting interest rates. 

• In this environment, the Chinese government has also signaled that it will accelerate the liberalization of its capital account and financial markets.

• This promises to further transform Chinese as well as global markets, and enable Chinese market participants to invest in a range of overseas financial assets.

• By allowing the domestic market to have greater access to foreign capital, they are on course to becoming “mainstream” players in the international markets.

• At the same time, the range of activities conducted in RMB is rapidly expanding beyond trade settlement.  And to further reform the markets, China is also preparing to liberalize domestic interest rates, and to introduce more commercially driven lending.

• As we can all see, the reforms that China has set forth are gradually taking shape.  One clear example is the expansion of the Renminbi Qualified Foreign Institutional Investor (RQFII) Program.  China has already made significant strides to bring its currency to the world.  In a little over two to three years, the offshore RMB market has expanded from Hong Kong to Singapore, Taiwan, London and New York.

• At the same time, China will also double the quota of the QFII program to $150 billion, as Beijing widens channels for foreign investors to buy mainland stocks, bonds and money market instruments.

• And since the implementation of the Shanghai Free Trade Zone to facilitate cross-border commodity and capital flows, China has formally approved plans for three more free trade zones in a trial program intended to pave the way for liberalization of the country’s financial sector.

• Chinese exchanges have also stepped up to the plate, and in the past few months, there have been several exciting developments in the commodities space.

• Shanghai Futures Exchange first launched gold and silver contracts for night trading in July 2013, and since then, up till the end of last year, we have seen a total of 23 futures contracts launched by various Chinese exchanges for night trading sessions. This overlap between the Chinese domestic derivatives market and global derivatives markets, have created more arbitrage opportunities, and their price linkages are now much stronger than ever.

• In March this year, the Shanghai Futures Exchange (SHFE) listed futures contracts for tin and nickel, and we have seen healthy volumes and open interest in these products.

• And with SHFE’s unveiling of the International Energy Exchange (INE) to handle energy futures trading within the Shanghai Free Trade Zone, as well as other products including natural gas and petrochemicals in the future, one thing is for certain:- The creation of the INE is a major milestone in the development of China’s futures markets.  At the same time, having this new entity located within the FTZ will definitely ease concerns of potential foreign participants regarding currency convertibility of yuan-denominated futures contracts.

• We are entering into a new era as China opens up, cautiously but surely.  The potential of the investment opportunities that China presents is enormous, and the world is watching.

• As China continues to liberalize, CME Group is well-positioned to be China’s partner in its drive towards globalization and liberalization.

• As you might know, CME Group is the world’s leading and most diverse derivatives marketplace – offering hedging and risk management products on agricultural commodities, foreign currencies, government debt, short term interest rates, stock indexes, energy, metals and a wide array of other instruments. 

• Our products are routinely accessed by institutional, corporate and private investors around the globe to manage risks in today’s uncertain global economy.

• CME Group handles 3 billion trades worth approximately $1 quadrillion annually on average, and CME Clearing is the counterparty to every one of those 3 billion contracts – thereby facilitating the transfer of $1 quadrillion of risk.

• While CME Group is headquartered in Chicago, our business is truly global.  We have established regional headquarters in London and Singapore to service the growing global demand for our products and services.  

• We operate around a dozen telecommunications hubs globally, of which 5 are in Asia, and they allow our customers to connect to CME Globex, which is our electronic trading platform. 

• This shows that the products we have developed are regarded as applicable beyond the borders of the United States to serve developed and developing economies throughout the world.

• We have therefore entered into partnerships with exchanges around the world that help internationalize our partner exchanges’ products. This also provides their own domestic customers with much greater choices of counterparties and products. 

• In the past year alone, we have inked agreements with various Chinese exchanges.

• In September 2014, we signed a market data provision agreement with China Financial Futures Exchange, where CME Group will license and distribute CFFEX market data outside of mainland China, allowing us to play a key role in the internationalization of their benchmark products, as China continues on its path of financial market liberalization.

• In that same month, we also signed a Memorandum of Understanding with Shanghai Clearing House, to explore opportunities to jointly develop products and services that will benefit market users globally, as well as to cooperate in the areas of risk management and market research.

• In November 2014, CME Group and Shanghai Gold Exchange (SGE) signed a MOU to explore opportunities in the areas of new product development, joint marketing and customer educational activities, as well as to cooperate in the areas of risk management, market research and information sharing.

• Our involvement in China doesn’t end there. 

• CME Group also works very closely with Chinese regulators and various local institutions on areas of education, innovation and efficient market operations, and in doing so we are undoubtedly participating in China’s growth.

• On the investor education front, we are committed to expanding our educational outreach to Chinese market participants.  We recently renewed a MOU to extend our partnership with China Futures Association, representing our commitment to expanding educational outreach to Chinese market participants.

• And just last month, we collaborated with Hexun – a leading financial news portal in China – to launch the Hexun-CME Group Online Futures Classroom – a Chinese language portal that integrates CME Group’s Chinese educational materials, ranging from daily market commentaries, webinars, research reports to videos. 

• This Online Futures Classroom allows Chinese investors to gain easier access to CME Group and foreign derivatives market information, and will go some way in meeting China’s diversified risk management and investment demand needs.

• On the products front, we have also launched various futures contracts to cater to the needs of Chinese market participants. 

• These include the deliverable CNH futures contract, the Iron Ore 58% Fe Low Alumina CFR China (TSI) futures contract, as well as the Gold Kilo futures contract – all aimed at meeting growing industry demands and serving the growing markets in Asia, specifically in China.

• Clearly, this is a period of tremendous change and opportunity for everyone involved, as China proceeds on its path of economic and financial reform, and as it opens up to the world.

• We at CME Group see ourselves as a long term partner to China, and with our 167-year history of serving the risk management needs of customers around the globe – we will continue to support the various developments in China’s derivatives markets.

• CME Group is in regular dialogues with the Chinese regulators and other market constituents – and to constantly innovate and further build an efficient marketplace.

• We engage in ongoing extensive and in-depth communication and cooperation with Chinese exchange partners, and we certainly look forward to building on the foundations that we have laid in China.

• We firmly believe that through facilitating the internationalization of Chinese exchanges, and working hand in hand with Chinese regulators, only then will we be able to jointly establish an ecosystem that is beneficial to all parties, and which best serves the needs of the customer.

• With that, I would like to thank you all for being here today, and I wish the event organizers a very successful conference.

• Thank you.
  
  
  译文：
  
  

  “一带一路战略”下的期货市场发展与合作
  
  女士们、先生们，下午好！
  很荣幸今天来到这里，参加由上海期货交易所、郑州商品交易所、大连商品交易所、中国金融期货交易所，在中国期货市场监控中心和中国期货业协会的支持下，联合主办的第十二届上海衍生品市场论坛（SDMF）！
  
  我是威廉·诺腾贝特（William Knottenbelt），芝加哥商品交易所集团国际业务部的高级董事经理，负责集团在欧洲、中东、非洲、亚洲和拉丁美洲地区的业务。
  
  毫无疑问，我们在座的所有人，都是亲眼目睹过去十年间全球经济增长巨变，以及全球经济活动的重心从发达国家向新兴经济体转移的这个过程的见证者。
  
  在于2013年9月和10月访问中亚和南亚期间，中国国家主席 ------ 习近平先生提出了联合建设“丝绸之路经济带”和“21世纪海上丝绸之路”的倡议，也就是我们目前时常提到的、受到世界各国密切关注的“一带一路倡议”。
  
  通过提出“一带一路倡议”，中国政府向全世界表明了这样一个愿望：促进这一倡议的实施，为古丝绸之路注入生机和活力，更紧密地连接亚洲、欧洲和非洲各国，以新的形式，将互利合作推向更高水平。
  
  一直以来，中国等新兴市场的经济增长，都是在国家巨大人口所产生的巨大生产力推动下实现的。
  
  在将近30年的时间里，在巨大的基础设施投资的推动下，中国实际国内生产总值一直在以10%的速度增长。中国在以前所未有的速度，实现自身的现代化。然而，这种成功的成果意味着：依靠新增基础设施投资的模式已经达到顶点，以此获得的收益正在逐步下降。换句话说，旧的政策工具将不再具有它们曾经展现出的那种强大效力。
  
  但是，在芝加哥商品交易所集团内部，没有一个经济学家发出类似中国经济衰退的预言。目前，中国人民银行始终在坚持宽松的货币政策，一方面调低银行准备金率，另一方面不断降低利率。
  
  在这种环境下，中国政府还释放出加速资本账户和金融市场的自由化进程的信号。
  
  这将保证中国市场，以及全球市场的进一步转变，确保中国市场参与者能够投资一系列海外金融资产。
  
  通过扩大国内市场获取外国资本的通道，他们走在了成为国际市场“主流”竞争者的正确方向上。
  
  与此同时，有关人民币的一系列行动，也在迅速扩展，跳出了简单的贸易结算范围。为了进一步推动市场改革，中国还准备实现国内利率自由化，并引进更多商业驱动贷款工具。
  
  正如我们看到的，中国发起的改革正在逐步成型。一个很明显的例子就是“人民币合格境外投资者（RQFII）项目”。中国已经在大跨步地促进自己的货币走向世界。在两三年多一点的时间里，离岸人民币市场已经从中国香港走入新加坡、中国台湾、英国伦敦和美国纽约。
  
  同时，在拓宽外国投资人购买大陆股票、债券和货币市场工具的渠道的同时，中国还将QFII项目的份额翻倍，使之达到1500亿美元的水平。
  此外，在以促进跨境商品与资本流动为目标，开启上海自由贸易区之后，中国正式批准了一个新建三个自由贸易区的试点项目，希望以此为国家金融部门的市场自由化铺平道路。
  
  中国的交易所也走上舞台，在过去几个月中，在中国商品交易所领域，已经出现了好几个令人兴奋的新发展。
  2013年7月，上海期货交易所在国内率先发行了黄金与白银连续交易合约。我们看到，从那时开始到去年年底，中国的几家交易所已经发行了总共23种连续交易期货合约。中国国内衍生品市场与国际衍生品市场的这种重合，已经创造了更多套利机会，衍生品之间的内外价格联系也变得前所未有得牢固。
  
  今年3月，上海期货交易所（SHFE）推出了锡和镍期货合约。我们看到，这些产品的交易量和持仓水平都很健康。
  
  随着上海期货交易所为促进上海自贸区内部的能源期货交易而推出国际能源交易所（INE），以及未来包括天然气和石化合约在内的新产品的推出，有一件事是确定无疑的：国际能源交易所的创建，将成为中国期货市场发展史上的一个里程碑。同时，这个新交易所选址上海自贸区内的举动，将毫无疑问缓和潜在外国参与者对于人民币主导期货合约的货币可兑换性的疑虑。
  
  伴随中国谨慎但决然的开放脚步，我们正在进入一个新时代。中国提供投资机会的潜力是无限的，全世界都在看中国。
  
  随着中国继续自己的市场自由化进程，芝加哥商品交易所集团，在成为中国的全球化和市场自由化事业的合作伙伴方面，处于非常有利的地位。
  
  正如你们可能知道的，芝加哥商品交易所集团是世界领先的、多元化衍生品最丰富的市场，提供针对农产品、外汇、政府债、短期利率、证券指数、能源、金属，以及范围广泛的其它金融工具的套期保值和风险管理产品。
  
  长久以来，特别是为了在当今不确定的世界经济环境下管理风险，全球各种金融机构、企业和私营部门，都会选择我们的产品来控制风险。
  
  芝加哥商品交易所集团平均每年处理30亿笔交易，总价值达到约10,000亿美元。同时，芝加哥交易所集团下的CME清算所，则扮演着这30亿笔交易的交易对手的角色，协助所有市场参与者转移总值约10,000亿美元的风险。
  
  尽管芝加哥商品交易所将总部设在芝加哥，我们的业务实际上遍及全球。我们已经在伦敦和新加坡建立的地区总部，为满足全球对于我们的产品与服务的日益增长的需求提供各类服务。
  
  我们围绕全球12个电信中心展开业务，其中5个地处亚洲。所有这5个亚洲电信中心都允许我们的客户接入我们的CME Globex系统，也就是我们的电子交易平台。
  
  这表明，在美国境外，我们开发的产品也被视为适用产品，可以用来满足全球发达国家和发展中国家的需求。
  
  因此，我们与全世界的众多交易所都结成伙伴关系，帮助我们的合作伙伴实现其产品的国际化。同时，这样的关系也为他们本身的国内客户带来了更多、更大的交易对手与产品选择。
  
  仅仅在过去一年，我们就与中国各家交易所达成了协议。
  
  2014年9月，我们与中国金融期货交易所签订了一份市场数据提供协议。据此，芝加哥商品交易所将许可中国金融期货交易所使用，并向其提供中国大陆以外的市场数据，从而在中国继续沿着金融市场自由化道路发展的过程中，在中国交易所的基准产品的国际化方面，发挥关键作用。
  
  还是在去年9月，我们与上海清算所也签订了一份谅解备忘录，探索联合开发能够使全球市场用户受益的产品和服务的机会，以及在风险管理和市场研究领域展开合作的可能性。
  
  2014年11月，芝加哥商品交易所集团与上海黄金交易所（SGE）也签订了一份谅解备忘录，探索在新产品开发、联合市场营销与客户教育活动方面的机会，以及在风险管理、市场研究和信息分享领域进行合作的可能性。
  
  但我们参与中国市场的行动并未止步。
  
  芝加哥商品交易所集团还与中国市场监管机构和各类地方机构，在教育、创新和高效市场运营方面保持密切合作。所有这些行动都毫无疑问地证明：我们是中国经济增长的参与者。
  
  在投资者教育领域，我们致力于将自身的教育范围延伸到所有中国市场参与者身边。最近，我们更新了与中国期货业协会签订的谅解备忘录，延长了双方的伙伴关系。它代表了我们对于将教育范围延伸至中国市场参与者身边的承诺。
  
  就在上个月，我们与和讯，一家领先的中国金融新闻门户，合作发布了“CME集团在线期货教室”项目。这个项目是一个汉语平台，旨在整合芝加哥商品交易所集团的汉语教育材料，包含从每日市场评论、网络研讨会、研究报告到各种视频资料的许多内容。
  
  这个在线期货教室将为中国投资者提供一个比以往更便利的、访问芝加哥商品交易所集团信息和外国衍生品市场信息的途径，并将采用多种方法，来满足中国多样化的风险管理和投资要求需求。
  
  在产品领域，我们已经为满足中国市场参与者的需求而发布了多种期货合约。
  
  其中包括：可交付离岸人民币（CNH）期货合约，‘58%品味铁矿石、低氧化铝、成本加运费、中国目的地（TSI）’期货合约，以及‘一公斤黄金（Gold Kilo）’期货合约，全部以‘满足亚洲，尤其是中国日益增长的产业需求，为亚洲，尤其是中国的增长中市场服务’为目的。
  
  显而易见，这是个中国继续沿着经济与金融改革的道路前进，继续对外开放的时代，是一个大变革的时代，每个参与者都能从中找到机会的时代。
  
  我们芝加哥商品交易所集团把自己视为中国的一个长期合作伙伴，凭借我们167年为全世界的客户满足风险管理需求的服务史，我们将继续为中国衍生品市场的各种发展提供支持。
  
  芝加哥商品交易所集团与中国监管机构和其它市场成分要素保持着定期对话，借此保持创新，并为建立高效市场贡献力量。
  
  我们致力于与中国交易所伙伴展开持续、广泛、深入的交流与合作。我们期待着在中国打下的现有基础上更进一步。
  
  我们确信，通过帮助中国交易所完成其国际化进程和与中国监管机构携手合作的方式，事实上，也只有通过这种方式，我们才能共同建立起一个有利于所有方面的、能够更好地满足客户需求的生态系统。
  
  怀着这样的期望，我由衷感谢今天在场的所有与会者！我祝愿活动组织者举办本次论坛取得圆满、成功！
  
  谢谢大家！