CME Group, the world's leading and most diverse derivatives marketplace, and Bank of China Limited (BOC), the world's ninth largest bank with the highest degree of internationalization and diversification, announced Bank of China, New York Branch will become a CME Clearing settlement bank and collateral custodian, subject to regulatory approval.
With the addition of Bank of China, New York Branch, CME Group's customers will now have an even more diverse list of approved settlement banks to choose from.
"We're pleased to expand our global reach with Bank of China, New York Branch as our partner because this offers our clearing member firms alternative options to fulfill collateral obligations and daily settlements at CME Clearing," said Kim Taylor, President, CME Clearing. "To several of our newer member firms, this is an opportunity to establish a banking relationship with a familiar name in their region."
"This successful collaboration with CME Group is a great milestone in the development of the relationship between our two companies and also demonstrates the Bank's emergence as a global financial leader by providing comprehensive services in the Commodities Futures business to customers globally," said Xu Chen, General Manager, Corporate Banking Unit (Financial Institutions), Bank of China.
In March 2012, CME Group and BOC announced the companies signed a Memorandum of Understanding that confirmed both organizations' intent to explore and potentially collaborate in the areas of clearing membership, banking settlement, offshore RMB depository and cross-border futures business in the U.S. and China.
BOCI Commodities & Futures Limited, a wholly-owned subsidiary of BOC, currently serves as a CME Clearing member. CME Group's selection of BOC is an acknowledgement of BOC as a leader in the U.S. banking and security services markets in America.
CME Group and Bank of China, New York Branch expect the new relationship with settlement services to begin by year end.