Published On: Wed, May 28th, 2014

DCE And BOCOM Ink Strategic Cooperation Framework Agreement

Liu Xingqiang DCE President

Liu Xingqiang DCE President

To promote and deepen the banking-futures cooperation, on May 23, Dalian Commodity Exchange (DCE) and Bank of Communications Co., Ltd. (BOCOM) signed a strategic cooperation framework agreement in Dalian.

Under the agreement, with the guideline of “joint innovation and common development” and the principle of “honesty and credibility, equality and mutual benefit, long-term cooperation and common development”, the two sides will establish a comprehensive strategic partnership in accordance with their own business characteristics and competitive advantages, and carry out diversified cooperation in all aspects such as the settlement depository business, service for clients, innovation in products, personnel training and research.

Addressing the signing ceremony, a DCE official said that in 20 years of development, DCE has been strongly supported by the banking sector represented by BOCOM. In recent years, on the basis of the margin depository business, the banking industry and the futures industry have developed the standard warehouse receipt pledge and other businesses, constantly improving the market services. But there is still great cooperative space for the two sides to promote the functioning of the futures market and better serve the real economy. Since last year, DCE has advanced the banking-futures cooperative business model and vigorously promoted the implementation of the model by organizing multiple forums. With the exchanges deepened, the two sides have been more aware of the broad prospects of the banking-futures cooperation. Relying on their networks and resource advantages, the banks may play their roles in expanded services for industrial clients, product marketing, risk management, delivery warehouse management, standard warehouse receipts pledge and other innovative businesses on the futures market. Through credit limits, credit costs and other means, the banks may urge the enterprises to make more use of the futures market to manage risks and facilitate the improvement of the capital quality in the enterprises. The strategic cooperation between DCE and BOCOM will help improve the capacity of the futures market in Dalian for serving the real economy and promote the greater functioning of the futures market in the national economy.

A BOCOM official said in the speech that in 21 years since its establishment, DCE has always been committed to the development of the futures market, adhered to serving the real economy and energetically promoted the product innovation and service for industries, having made remarkable achievements. Currently, the futures prices of the listed products on DCE have become the authoritative prices on domestic market, providing all the market players with the compass for prices and the haven for operation, offering effective price references for China’s macroeconomic regulation and making outstanding contributions to establishing and expanding the influence of Chinese prices. As the first Bank to introduce the banking-futures businesses and link up the settlement systems with DCE, BOCOM has long supported the innovation and development of the futures market in Dalian. Since last year, the two sides have jointly organized two banking-enterprise-futures industrial clients matchmaking meetings, vigorously explored how to better build the financial service platform and continuously enriched the contents of the cooperation through extensive business exchanges. In the next step, with the progress of the multi-level capital market accelerated, the space of the cooperation among the financial institutions will be broader. BOCOM will take the opportunity of the strategic cooperation to give full play to the advantage as an international bank featuring comprehensive operation and wealth management, and spare no effort in supporting DCE in achieving the targets in innovation, development and building itself into an important futures trade center in Asia on the basis of convenient settlement channels, innovative financial products and excellent bank services. It is believed that the two sides are bound to bring their own advantages in resources and experience into full play, expand the cooperation, make innovation in

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