China Financial Futures Exchange inks MOU with Nasdaq OMX
China Financial Futures Exchange has signed a deal with Nasdaq OMX to strengthen cooperation and promote mutual development, in a move that will likely see Nasdaq technology expand into China. According to the MOU, CFFEX and Nasdaq OMX will carry out “extensive cooperation” on technology, consultation, information sharing, staff training. They will also explore the possibilities for setting up collaborative projects. The deal was signed by Zhang Shenfeng, chairman at CFFEX and Sandy Frucher, vice chairman at Nasdaq OMX at the World Federation of Exchanges’ annual meeting in Mexico City.“In recent years, CFFEX has been exploring its global strategy, which includes learning from the experience of overseas markets, strengthening cooperation with them and exploring development opportunities,” said Shenfeng at CFFEX. “CFFEX and Nasdaq OMX have previously cooperated, and this new MOU can be seen as an opportunity to explore other areas of cooperation for the mutual benefit of each exchange.”
The deal potentially opens up another market for Nasdaq OMX’s technology business, which has been in competition with rival NYSE Technologies and several other global exchanges including Germany’s Deutsche Boerse and the London Stock Exchange to sell its technology in various emerging markets around the globe.
Most recently, Saudi Arabia’s Tadawul stock exchange agreed to replace its trading engine with Nasdaq OMX’s X-Stream INET technology at the beginning of next year. The X-Stream engine being installed by the Saudi stock market is already being used in at least 22 different markets around the world, including New Zealand, where it was installed earlier this year. The technology can sustain an order rate of 40,000 orders per second with latency under 40 microseconds, according to its official specifications. It also has a plug-in library of up to 300 functions, which can be used to customise it.