Tuesday, October 10, 2017

CME puts on a brave face as its claims to 'welcome' competition from China's expected oil contract

As China prepares for the introduction of a new Yuan denominated oil contract to compete with London's Brent and the CME's West Texas Intermediate (WTI) futures contracts, the President of the Chicago Mercantile Exchange is putting on a brave face and believes China's entry into the oil game won't be a threat to American markets.

In fact in an interview conducted with the Nikkei Asia publication, CME Chief Bryan Durkin thinks that as China opens up to compete with Western markets, his exchange will outdo them at their own game.

CME Group President Bryan Durkin hopes to tap new customers in Asia by highlighting the group's multi-asset class offerings. 
In an interview with The Nikkei on Sept. 29, Durkin said of Asia: "This market is right for growth and we have emphasized our focus and efforts in building multi-asset class offerings, deep liquid markets, [and an] industry-leading platform." 
Durkin sees opportunity in cross-sales of its various asset classes, utilizing the 300 people already on its regional payroll. "You may have users that have traditionally only focused on interest rates, and they haven't availed themselves maybe to foreign currency or to the metals. We use our capabilities both in education and performance of the overall contracts to draw clients into multi-asset classes," he said.
Durkin believes China's planned launch of crude oil futures trading in Shanghai will not undermine the global competitiveness of the group's mainstay crude oil futures, West Texas Intermediate, traded on the New York Mercantile Exchange. 
"We welcome competition. We have proven and shown that competition is healthy for the marketplace in terms of keeping us on our toes, in making sure that the products we offer and represent remain the benchmark," Durkin said. – Nikkei Asia

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