KUALA LUMPUR: Bursa Malaysia Derivatives Bhd has strengthened existing business partnerships with the Shanghai Futures Exchange (SHFE) and the Shanghai International Energy Exchange (INE) via a memorandum of understanding (MoU).

The MoU will commit the named exchanges to share information and best practices on product development, market operations, and the areas of common interest for all three markets.

Bursa Malaysia Derivatives chief executive officer (CEO) Samuel Ho said the signing of this MoU is a positive development that will lay the groundwork for a long-term relationship between Bursa Malaysia Derivatives, SHFE and INE.

"Aside from driving the growth of the ASEAN derivatives markets, this collaboration will indirectly support and contribute towards the China-Malaysia economic trade, given China's position as Malaysia's largest trading partner and rubber importer. 

"We look forward to working with SHFE and INE on the development of new products that will not only complement existing offerings but will also meet the needs of increasingly sophisticated customers," said Ho.

CEO of SHFE and INE Wang Fenghai said the signing of the MoU is the culmination of the three exchanges' close friendship over the years.

He added that SHFE and INE are keen to collaborate with Bursa Malaysia Derivatives to learn while deepening mutual understanding of each other's markets and providing more risk management tools to investors.

The MoU is part of SHFE and INE's commitment to open up China's futures market.

Currently, INE has attracted overseas investors from more than 20 countries and regions across six continents, including Asia, Europe, North America, South America, Africa, and Oceania.

It also has the most international products of any of China's commodity futures exchanges.