Chicago Mercantile Exchange (CME)

[Komando Robot]

Are you still in CME? 262

[Komando Robot]

$269.02

[Komando Robot]

Thanks good stuff there. I'm waiting for a real bounce. I'd like to see $290

[momentum74]

CME 266.18 Stifel says attractive entry point

June 6, 2011 08:53 EDT CME, CME Group weakness creates attractive entry point, says Stifel Nicolaus

Subscribe for More Information :theflyonthewall.com

http://www.theflyonthewall.com/permalinks/entry.php/CME;NYXid1381284/CME;NYX-CME-and-Deutsche-Borse-explored-a-tie-up-WSJ-says-

[momentum74]

CME 266.14 link 4 stocks improving by Graham standards
http://seekingalpha.com/article/273644-4-stocks-raising-dividends-improving-profits-and-undervalued-by-graham-s-standards?source=yahoo

[Komando Robot]

266.14

[Komando Robot]

There's a new sheriff in town

[Komando Robot]

Looking good.

[Komando Robot]

273.00

[AmberJoy]

I just heard a tv commercial for CME Group on CNBC... imo.... the script was obviously written by someone who has no idea about risk management.... I like the visuals in this commercial though.... Have you guys seen this? What do you think about it?

[Komando Robot]

251.59

[Komando Robot]

CME $285, anyone else see $300.00 Coming?


Cut $282.74

[Komando Robot]

[Komando Robot]

Daily Chart ~

[Stock]

CME sweetens offer for BOT

[Daywalker]

Very nice.eom

[Daywalker]

This may be ready to breakout to the upside.

[Chicagostock]

[Chicagostock]

housing futures coming soon

[Chicagostock]

CME and the Korean Ministry of Finance and Economy Collaborate to Launch New Korean Won Futures

May 18, 2006 11:01:26 (ET)


SEOUL, Korea and CHICAGO, May 18, 2006 /PRNewswire-FirstCall via COMTEX/ -- In cooperation with the Korean Ministry of Finance and Economy (MOFE), CME, the world's largest and most diverse financial exchange and the largest regulated marketplace for foreign exchange (FX) trading, today announced its plan to list futures and options on futures on the Korean Won. The contracts are scheduled to launch later this year and will trade exclusively on the CME Globex(R) electronic trading platform.

"We are extremely pleased to receive the support of the Korean Ministry of Finance and Economy for CME Won futures," said CME Chairman Terry Duffy. "The Republic of Korea represents one of the world's most important economies and CME Korean Won futures will provide global financial institutions, corporations and investors with a valuable tool to hedge fluctuations in the valuation of the Korean Won as they seek to manage the inherent risks in international currency markets."

"It is expected that listing of Korean Won futures contracts in CME will facilitate the Won's internationalization," said Tae-Kyun Kwon, Director- General of International Finance Bureau, MOFE. "We expect that boosted risk management on the Won through CME would encourage foreign investments in the Won-based financial products."

"The introduction of CME Korean Won futures and options contracts represents an important facet of our comprehensive and long-term Asian growth strategy," said Craig Donohue, CME Chief Executive Officer. "During the past two years, CME has launched a number of initiatives targeted to Asian-based investors, including our historic agreement with the China Foreign Exchange Trading System to provide Chinese banks with access to CME's foreign exchange and interest rate products, new products such as our CME E-mini(R) S&P Asia 50(R) and CME E-mini MSCI EAFE(R) futures contracts, the opening of our first Asian telecommunications hub in Singapore, the introduction of our Asia and Emerging Markets Incentive Plans, and the extension of the CME FX on Reuters service to Hong Kong."

CME offers the world's largest regulated FX trading complex, providing users with liquid, transparent markets, guaranteed execution and central counterparty clearing risk management on 37 individual FX futures and 24 options on futures products. CME received FX Week's 2005 eFX award for the best electronic futures platform. Last year, over 51 million FX contracts with a notional value of over $6.2 trillion traded at CME.

The Ministry of Finance and Economy (MOFE) of Republic of Korea is responsible for wide range of economic and financial policies towards the nation's medium and long term economic and social developments.

Chicago Mercantile Exchange Inc. ( http://www.cme.com ) is the world's largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on CME Globex electronic trading platform and on its trading floors. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange managed $47.0 billion in collateral deposits at March 31, 2006, including $3.8 billion in deposits for non-CME products. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (CME, Trade), which is part of the Russell 1000(R) Index.

Statements in this news release that are not historical facts are forward- looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent Quarterly Report on Form 10-Q, which can be obtained at its Web site at http://www.sec.gov. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Chicago Mercantile Exchange, CME, the globe logo and CME Globex are registered trademarks of Chicago Mercantile Exchange Inc. E-mini is a trademark of CME. CLEARING 21 is a registered trademark of CME and New York Mercantile Exchange, Inc. S&P, S&P 500, NASDAQ-100, Nikkei 225, Russell 1000, Russell 2000, TRAKRS, Total Return Asset Contracts and other trade names, service marks, trademarks and registered trademarks that are not proprietary to Chicago Mercantile Exchange Inc. are the property of their respective owners, and are used herein under license. Further information about CME and its products is available on the CME Web site at http://www.cme.com.

CME-G

SOURCE Chicago Mercantile Exchange Inc.


Media Contacts, Anita Liskey, [phone], or Pamela Plehn, [phone], or
[e-mail] , or Investor Contact, John Peschier, [phone], all of CME; or
Kyungjin Song, [phone]. 2348, or Kun-Il Hwang, [phone]. 2493, or
[e-mail] , or english.mofe.go.kr , both for Korean MOFE
http://www.prnewswire.com

[Chicagostock]

ANYONE WATCHING CME?
http://i73.photobucket.com/albums/i227/chicagostock/cme3.gif

[Chicagostock]

CME bounced off 50 day ma as expected and could be ready for another run to break $500 this time around... IMO




glta

[Chicagostock]

Chicago Mercantile Exchange Holdings Inc. Announces Conference Call Regarding FXMarketSpace Joint Venture

May 04, 2006 07:20:22 (ET)


CHICAGO, May 4, 2006 /PRNewswire-FirstCall via COMTEX/ -- Chicago Mercantile Exchange Holdings Inc. (CME, Trade) will hold an investor conference call today, May 4, at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). The purpose of the call is to discuss the recently announced agreement between CME, the world's largest and most diverse financial exchange, and Reuters, the global information company, to create FXMarketSpace, the world's first centrally-cleared, global foreign exchange marketplace through a new 50/50 joint venture company.

A live audio Webcast of the conference call will be available on the Investor Relations section of the company's Web site, http://www.cme.com. Following the conference call, an archived recording will be available at the same site. Those wishing to listen to the live conference via telephone should dial [phone] if calling from within the United States or [phone] if calling from outside the United States, at least 10 minutes before the call begins.

Chicago Mercantile Exchange Holdings Inc. became the first publicly traded U.S. financial exchange on Dec. 6, 2002. The company was added to the Russell 1000(R) Index on July 1, 2003. It is the parent company of Chicago Mercantile Exchange Inc. (http://www.cme.com), the world's largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on its trading floors and CME Globex(R) electronic trading platform. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange managed $47.0 billion in collateral deposits at March 31, 2006, including $3.8 billion in deposits for non-CME products.

Further information about Chicago Mercantile Exchange Holdings Inc. and Chicago Mercantile Exchange Inc. is available on the CME Web site at http://www.cme.com .

CME-G

SOURCE Chicago Mercantile Exchange Holdings Inc.


Media Contacts - Pamela Plehn, [phone], or William H. Parke, [phone],
[e-mail], Investor Contact - John Peschier, [phone], all of Chicago
Mercantile Exchange Holdings Inc.
http://www.prnewswire.com

[Chicagostock]

We will see if it holds the 50MA... IMO it will reverse from here. Gap to 455 has been filled, ready to start moving higher...

[bernoulli]

China Said Ending Foreign Currency Quotas
UPDATED - Thursday April 20, 2006 6:04am


BEIJING (AP) - China will abandon quotas on how much foreign currency its companies can obtain in order to invest abroad, a news report said Thursday.Such a step, which comes as Beijing's trading partners urge it to ease strict currency controls, could result in a dramatic increase in the amount of money that Chinese companies are investing abroad.

The report by the official Xinhua News Agency didn't say when it would take effect.

"In the future, if any firms win approval to invest overseas, they could freely buy foreign currencies needed for the investment from banks," Xinhua quoted Guan Tao, an official at the State Administration of Foreign Exchange, as saying.

Until now, China has required companies to go through a multi-stage process to invest abroad, first getting approval for projects and then applying for permission to buy the foreign currency to pay for them.



Companies are required to bring home most of the money that they make abroad and convert it into Chinese currency, which gives foreign exchange regulators a dominant role in foreign business decisions.

Many companies say those restrictions limit their ability to pursue opportunities, and some flout the rules by keeping profits abroad.

The government announced last week that it will sharply raise the amount of money that companies and individuals are allowed to move abroad for investment as of May 1.

China has the world's biggest foreign currency reserves — $875.1 billion as of the end of March — as a result of surging exports and foreign investment and controls that limit the amount of money that can be taken abroad.

China also is under pressure to relax controls on the exchange rate of its currency, the yuan, which the United States and other trading partners say is too low and gives Chinese exporters an unfair price advantage.

"We now want to strengthen the support for overseas investment by Chinese companies," Guan was quoted as saying. "We want to expand channels for foreign currencies to flow out of the country, which is why we are poised to abolish the corporate overseas investment quotas.

[bernoulli]

Chicago Board of Trade, ( BOT ), beat anaylst estimates by 5 cents,
over 8%, estimate was 61 cents, reported 66 cents, net income rose 69%
revenue rose 23%, 143.6 million and exchange and clearing revenue rose 23%
, 106.4 million, from the same quarter last year.

Guess the folks at Goldman Sachs, who started BOT at peer perform,
yesterday, were simply trying to buy BOT on the cheap. Because BOT
kicked serious ass with this earnings report. I don't own BOT just
wanted to comment on GS analyst. Let's see if they upgrade, I always
like to see what excuse they make when they are cleaning the egg off
their face.

Seems, Merrill's commodity business being weak is not sector typical
They were right on one account, they need to do more work with this
portion of their business. A lot more, it appears.

[bernoulli]

This morning Merrill said their commodity business was weaker than they would of liked. Quote, "Commodities need more work". Merrill is known for their oil traders so they do not really compete in the same areas as CME but the market doesn't know this.

[bernoulli]

Two developments.

1. Yesterday Merrill Lynch put a $495.00 price target on CME

2. This morning Bear Stearns started CBOT, chicago board of trade, at peer perform.

Meaning Merrill essentially put a cap on how far the price should go and stearns said CME's counterpart CBOT was a peer performer. However, they started ICE at outperform a niche market exchange.

[bernoulli]

Posted by: bernoulli
In reply to: kgoodrich who wrote msg# 26 Date:4/18/2006 8:34:35 AM
Post #of 28

WOW !, thanks Mr. Kgoodrich. Concerning myself, I am a very conservative investor, I do not get involved with anything that is overly risky. Now why does CME do well in the spring. Primarily because if you look at their earning numbers, http://www.earnings.com/company.asp?client=cb&ticker=cme, just put cme in the ticker box then hit go, you will notice that historically they make the most in their second quarter, the reason is, they sell commodities, beef, pork, etc., as well as interest rate derivatives, currency futures, and a host of other commodities. See, http://www.cme.com/ the big deals with this years second quarter forward are, a.) cme will begin trading all electronic NYMEX futures, oil, gas, unleaded, heating oil, the list goes on and b.) to me, this is my opinion don't read too much into it, the largest single business transaction ever announced in the history of the world was announced on March 10, 2006 see post #8. Next, see, post #11, on Friday Apr. 14th the Chinese did what the post said, which was another huge, huge, huge deal as we are talking about trillions of dollars Chinese citizens can use to invest in foreign stocks, currency, etc. The markets reaction, big deal who cares, etc.. So what do I know. Now re-read post #8. Now go to the CME link and see what their other FX products consist of. Whatever you do, do not buy CME based on my opinions, if you lose money, the buys were your choice just like it will be if you make a small fortune either way you take the gain or loss.

[bernoulli]

Mr. Goodrich, you should petition IH managers, with this type of info. your membership should be free.

[kgoodrich]

Here is the seasonals I promised.
I don't know a bad time to own this one. There are better times to own it but look at the semi-yearly format. There is really no bad six month period not to own it. Wow. Snap Hook you are right Wow. Bernoulli has himself gold mine. I will run all of the components Bernoulli to see what makes this exchange tick. Nice spring and early summer positioning here. I don't know how long I can keep these charts in my personal home page, but I will try to keep them for a few days at least. Let you know what I find. I am down to two posts. I will speak to you tomorrow. See you.

Ken

[Snap Hook]

WOW - Play it with Call Options and you get http://www.investorshub.com/boards/read_msg.asp?message_id=10703541

[kgoodrich]

Just a thought bernoulli
I just noticed that the CME has 141 components and I may run them all in the seasonal templates. I am very curious why the CME does so well in April to June. That is a very, very good geomean average for three months each year. I will let you know what I find out. I know that most of it is mutual funds, but many mutual funds that I have found have made over 600% growth in the past 6 years. That is good compound interest. See you later.

[kgoodrich]

You are welcome.
I have a lot of new toys to play with now. Are you the same Bernoulli that Gummy made the spreadsheet about? I have many great ideas that I have shared with Gummy. The MFI indicator that he placed in his spreadsheet list was one. Great indicator to determine trend of money flow. With your permission bernoulli, I will post a chart here on your board of CME in their seasonality format that I have invented several years ago. You will like it. See you later. It makes a difference when you only have 15 posts a day now. hehe

[bernoulli]

Mr. kgoodrich, I have never seen the seasonality picture you present so eloquently,
it adds another dimension to my ability to look at securities. Thanks

[bernoulli]

That depends, if no one places any significance on what has happened, then, most likely nothing. However, after Hu's visit this week with GWB maybe things will open up more. Regardless the fact that CME has this exclusivity with China's Foreign Exchange Network is seriously significant in the long haul. My best guess, who knows !

[Urbanite2]

What do you think happens Monday for CME?

[kgoodrich]

Hi Bernoulli
I ran CME in the template and it looks really good for spring and early summer. Here is the monthly and quarterly view seasonally speaking Bernoulli. Have a great Easter.

STOCKSEASONALITY.COM® MONTHLY REPORTS												 
 THE ORIGINAL SEASONALITY STOCK CHARTING SYSTEM												 
 CME												 
 YEAR	JAN	FEB	MAR	APR	MAY	JUN	JUL	AUG	SEP	OCT	NOV	DEC 
 2006	15%	1%	5%	10%								 
 2005	-6%	-4%	-6%	1%	11%	37%	2%	-8%	22%	8%	-3%	4% 
 2004	21%	7%	4%	21%	10%	12%	-13%	6%	21%	9%	11%	17% 
 2003	-3%	1%	12%	17%	9%	14%	6%	-4%	-2%	-1%	1%	6% 
 2002	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0% 
 2001	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0% 
 2000	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0% 
 CPI	27%	5%	16%	57%	32%	74%	-6%	-7%	45%	16%	9%	29% 
 GEO%	3%	1%	2%	7%	4%	8%	-1%	-1%	5%	2%	1%	4% 
 TG	1053%											 
 PR 	2	0	1	4	2	5	0	0	3	1	0	2

CME	NOV	DEC	JAN	FEB	MAR	APR	MAY	JUN	JUL	AUG	SEP	OCT 
 	JAN	FEB	MAR	APR	MAY	JUN	JUL	AUG	SEP	OCT	NOV	DEC 
 2006	16%	20%	22%	16%	15%	10%						 
 2005	22%	10%	-15%	-9%	5%	53%	54%	29%	14%	21%	28%	9% 
 2004	29%	28%	34%	35%	39%	50%	7%	3%	12%	40%	47%	42% 
 2003	-3%	-3%	11%	33%	43%	45%	31%	15%	-1%	-8%	-3%	5% 
 2002	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0% 
 2001	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0% 
 2000	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0% 
 1999	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0% 
 CPI	78%	37%	26%	64%	109%	231%	116%	52%	27%	58%	83%	63%

[bernoulli]

http://cme.texterity.com/cme/200512/

December 2005 issue of CME magazine gives us a little
more history as to what the stakes are with this deal.

Keep in mind that even though CME has approximately 34 million
shares, only 4.4 million of those are available for trading.
CME as you know requires each of it's members to hold a minimum
of 15,000 shares in order to maintain their membership and the
CME officers and board hold a significant number of shares as well
which explains why there is such a low float. I can't even imagine what
is going to happen to that float as the Chinese and other companies
become members of CME in the Chinese markets come April 24th through
May 1st, 2006. The new 54 companies alone, just approved by China,
will have to buy about 810,000 of these at a minimum, a conservative
estimate would be closer to a million, leaving only 3.4 million shares
on the float.

[bernoulli]

The below probably explains why the open interest on CME April 500 calls jumped to
1,774 on thursday, Apr 480 calls jumped to 2,028. approximately 6 times the avg. open interest. I couldn't figure out what was going on Thursday or I would of posted it. I'll throw a party for the CME and GOOG folks in Las Vegas if CME does what I think it will on Monday.

[bernoulli]

Zhou and Bush to strengthen economic cooperation
17:04, April 14, 2006, note: Chinese time.
President Hu's US visit of great significance: Interview


On April 13, Chinese Ambassador to the United States Zhou Wenzhong had an interview with People's Daily Online reporter Li Xuejiang on the forthcoming visit of Chinese President Hu Jintao to the US and the evaluation of the current Sino-US relations.

Zhou said that at the invitation of US President George W. Bush, President Hu will visit the United States between April 18 and 21. This will be Hu's first visit to the US after he was elected the president of China. It will also be another major event in Sino-US relations following the meetings between the two heads of states in New York City and Beijing respectively last year. Hu's visit aims to expand consensus, deepen cooperation and comprehensively promote the development of Sino-U.S. constructive and cooperative relations. In the past period of time, China and the US have held a series of active consultations and preparations for Hu's forthcoming visit. With the joint efforts of both sides, the visit is expected to be a successful one which will have a positive and far-reaching impact on strengthening the bilateral exchanges and cooperation in various fields and promoting Sino-U.S. constructive and cooperative relations in the 21st Century.

Zhou pointed out that Sino-US relations is one of the world's most important bilateral relationships. As the largest developing country and the largest developed country, China and the US shoulder very important responsibilities for maintaining the peace and security of the world, especially the Asia-Pacific region. Of course, due to the differences in the social systems, levels of economic development and historical and cultural background, China and the US do have some disagreements and contradictions on some issues. But the two countries share comprehensive and important common interests with each other, and this is the primary point. China and the US should be able to develop a long-term, stable and constructive relation of cooperation. During the26 years after the two countries developed a formal diplomatic relations, China and the US have made remarkable progress in bilateral relations in many fields. Today, the world situation is undergoing profound changes. The people have got out of the clouds of the Cold War confrontation. Seeking peace, development, and cooperation has become an irresistible historical trend. The interests of all countries in the world are deeply interwoven. In this context, the common interests between China and the US has not been diminished but rather been increased; the basis for the cooperation between the two countries has not been weakened, but strengthened; the importance of the Sino-US relations has not been undermined, but rather highlighted.

Zhou said that the current Sino-US relations have maintained a good momentum of steady development. High-level communication and contacts increased and dialogues and exchanges at all levels and in various fields augmented. The two countries have made new progress in the exchanges and cooperation in economy, trade, anti-terrorism, law enforcement, non-proliferation of nuclear weapons, combating infectious diseases, science and technology, and education. China and the US have effective dialogues and coordination on some international and regional issues such as the nuclear issue on the Korean peninsula, Iran nuclear development, Iraq's reconstruction, and the UN affairs. We hope that China and the US can have more close cooperation so as to further promote peace, stability and prosperity of the Asia-Pacific region and the whole world.

With regard to the Sino-US economic and trade relations, Zhou Wenzhong said that Sino-US economic and trade cooperation have been mutually beneficial, which brought real benefits to the people of both countries. During the 27 years after the establishment of Sino-US diplomatic relations, the bilateral trade volume surged from the less than 2.5 billion US dollars in 1979 to the 211.6 billion US dollars in 2005, an increase of 80 times. China and the US have seen an increasing interdependence on each other. Sino-US trade and economic cooperation is playing a more important role in promoting economic development of both countries. China is America's third largest trading partner and fourth largest export market. The US is China's second largest trading partner and sixth largest import source. By choosing Chinese goods which have excellent quality but reasonable prices, US consumers can save more than 100 billion US dollars in annual expenditures. The healthy development of Sino-US economic and trade cooperation will bring to the people of the two countries more benefits. Of course, frictions inevitably arise during the rapid development of Sino-US economic and trade relations. The key point here is to deal with the disputes and disagreements basing on the principles of "equality, mutual benefit and development". Both countries should avoid politicizing the economic and trade issues and should make efforts to unfold win-win cooperation on the basis of mutually benefits. With the joint efforts of the two countries, the 17th session of the Sino-US Joint Commission on Commerce and Trade (JCCT) meetings which was held recently in Washington D.C. yielded positive results, which have very positive significance in resolving Sino-US trade friction and promoting the steady development of the Sino-US economic and trade relations.

Zhou emphasized that the Taiwan issue is concerning China's sovereignty and territorial integrity. It is the most important and most sensitive core issue in the China-US relations. Properly handling the Taiwan issue is crucial to ensure a stable development of Sino-US relations. The activities of the "Taiwan independence" separatist forces are the biggest threat to the stability of the Taiwan Strait and the security of Asia-Pacific region. Chinese government will show the greatest sincerity and make utmost efforts to strive for the prospect of a peaceful reunification of the motherland. But we are resolutely opposed to "Taiwan independence" and will never allow anyone to split Taiwan from China in any way. Opposing and containing "Taiwan independence" and safeguarding Taiwan Strait and the peace and stability of the Asia-Pacific region are in accordance with the common interests of both China and the US. We commend US President Bush and the US government for their repeatedly reiterating their adherence to the One China policy, their standing to the three Sino-US joint communiqu¨¦s, and their opposing "Taiwan independence". We hope that the US should abide by its commitments to China, properly handle the Taiwan issue, and work with the Chinese government to maintain the peace and stability in the Taiwan Strait and stand up for the Sino-US common interests.¡¡¡¡

Zhou added that Sino-US military ties are an important component part of the bilateral relations. With the joint efforts of both countries, Sino-US military relations have maintained a good momentum of development in recent years. The increasing exchanges between the two armies enhanced mutual understanding and trust. We are willing to work together with the US to continue promoting the steady development of the relations between the two armies.

The ambassador pointed out in conclusion that the fact has and will continue to prove that China's development is a peaceful, open, cooperative, and harmonious development. China's peaceful development will not pose any threat to the US or any other countries. On the contrary, it will only create new opportunities to the two countries and their peoples and the entire world. Sino-US relations will be more extensive in the new Century.

http://english.peopledaily.com.cn/200604/14/eng20060414_258470.html

[bernoulli]

Peoples daily online: China 8:33 AM April 14th, 2006

China relaxes foreign exchange control


China's central bank announced on Thursday night the relaxation of controls on foreign exchange accounts, simplifying approval procedures for foreign exchange payments in the service trade, and procedures for individuals to buy foreign currencies.

According to a document made public on Thursday by the State Administration of Foreign Exchange (SAFE), the three policy readjustments will be effective as of May 1.

They include the readjustments on foreign exchange accounts, simplifying approval procedures for foreign exchange payments in the service trade, and procedures for individuals to buy foreign currencies.

Under the aforementioned readjustments, it will be easier for corporate and private citizens to open foreign exchange accounts.

The ceiling of foreign exchange retained by enterprises under current account will be raised based on certain portions of their foreign exchange income and expenditure, the SAFE said.

The administration said each domestic resident may buy up to 20,000 U.S. dollars worth of foreign exchange from the State-owned banks each year, and they may apply to the banks for additional amount of foreign exchange with certificates that prove their needs.

The bank said it will also allow qualified banks to pool capital in Renminbi, the Chinese currency, from domestic institutions and individuals for overseas investment in products with fixed returns under an unspecified quota system.

It will allow fund management firms and other securities institutions to invest in a combination of stocks and other overseas securities using foreign currencies gathered from domestic institutions and private sources.

The bank said it would allow qualified insurance institutions to buy foreign currencies for investment in overseas products with fixed returns and money market instruments.

The amount of foreign currency purchased would be under a "certain portion" of the total assets of the insurance institution.

The bank said other new policies would be implemented in cooperation with other departments, while closely monitoring international payments, and readjusting policies to prevent risks and safeguard the country's economic and financial security.

The central bank said the new policies are designed to deepen the country's foreign exchange management system, boost trade facilitation and further cultivate foreign exchange market, and promote basic balance of international payment.

Source: Xinhua

http://english.peopledaily.com.cn/200604/14/eng20060414_258258.html

[bernoulli]

Bloomberg Headline: Posted Now:

Keep in mind that CME will control the entire affairs being described through their control center, GLOBEX, see Post #10 below for photo of GLOBEX command center.

Top Worldwide
E-Mail This Story Printer-Friendly Format

China Eases Capital Controls on Foreign Exchange April 14 (Bloomberg) -- China's government will allow domestic banks to convert their clients' local currency to buy U.S. Treasuries and other overseas fixed-income securities, a step toward a freely traded currency.

New rules announced by the People's Bank of China today allow companies and individuals to hold more foreign currency and qualified financial institutions to invest abroad. Chinese money management firms can invest in overseas securities including stocks, and insurers can buy fixed-income and money-market products.

The latest changes in China's foreign exchange regime, announced ahead of President Hu Jintao's visit to the U.S. next week, are part of preparations to move to a more flexible currency. Easier outflows may help reduce pressure on the yuan to rise and prepare domestic banks for competition, rather than meeting U.S. demands for a revaluation of the currency.

``The changes will facilitate foreign exchange outflow and hence ease pressure on the yuan to appreciate,' said Qing Wang, senior currency strategist at Bank of America N.A. in Beijing.

The yuan had its first weekly drop in more than a month, closing at 8.0168 to the dollar today compared with 8.011 on April 7, according to data compiled by Bloomberg. The yuan has gained 1.2 percent against the dollar since China revalued it by 2.1 percent and ended a decade-old peg on July 21. Premier Wen Jiabao said on March 14 that China will make the yuan more flexible.

China's foreign-exchange reserves, the world's largest, jumped 32.8 percent from a year earlier to $875.1 billion at the end of March, the central bank said today.

Individual Allowance

From May 1, individuals can buy up to $20,000 of foreign currency a year, from an earlier $8,000, and companies can keep 50 percent of their foreign-exchange expenses, according to today's statement.

Hu will arrive in the U.S. on April 18 with Commerce Minister Bo Xilai, National Development and Reform Commission Chairman Ma Kai and State Councilor Tang Jiaxuan. The delegation will leave the U.S. on April 21. Hu will meet his counterpart George W. Bush on April 20.

``All these things suggest quite a significant step in liberalizing the Chinese capital account,' said Tai Hui, a Hong Kong-based economist with Standard Chartered Plc.

``The continuous adjustment of policies accommodates domestic institutions and individuals' need for holding and using foreign currencies,' the State Administration of Foreign Exchange said.

As part of its commitments to the World Trade Organization, China must remove all geographic and business restrictions on Citigroup Inc. and other overseas lenders at the end of this year, allowing them to tap the nation's 15.1 trillion yuan ($1.9 trillion) household savings for the first time.

``The government needs to allow domestic banks to learn how to invest overseas,' said Zuo Xiaolei, chief economist at Galaxy Securities in Beijing.

Stocks Rally

China had banned its companies and citizens, with $3 trillion of savings, from buying stocks abroad to bolster domestic equities that slumped to an eight-year low in 2005 and prevent an exodus of foreign reserves used to sustain the yuan's level.

Improving sentiment toward domestic stocks has eased concern among government officials that they would be dumped if investors could invest overseas, said Zuo. The Shanghai Composite Index has gained 12.6 percent this year and the Shenzhen Composite Index has risen 18.9 percent.

On Jan. 5, the foreign-exchange regulator said it will scrap foreign-exchange quota limits on outbound investments by domestic companies. The body in May 2005 raised the investment Chinese companies can make to $10 million from $3 million.

World's Largest Reserves

China's foreign-exchange reserves overtook Japan's as the world's largest in February, when they reached $853.7 billion. A record $102 billion trade surplus, $60 billion of foreign direct investment and speculative inflows betting on a yuan appreciation last year drove up the reserves by more than a third.

China allowed the yuan to be freely convertible under the current account in December 1996, removing limits on the use of foreign exchange for trade in goods and services. Restrictions on inflows and outflows of money for investment purposes, or the capital account, mean the currency market is dominated by companies involved in trade.

The government often reiterates that capital-account controls helped shield China from the worst of the Asian financial crisis of 1997, and prevented further economic fallout from the collapse of other regional currencies at the time.

``We need to maintain a general balance of capital inflows and outflows,' Zou Lin, director of capital management at the foreign-exchange regulator, said at a conference in Beijing last month. ``How to prompt domestic funds to enter overseas markets will be the focus of our work,' he said.

[bernoulli]

Wall Street Jounal: Headline below they posted this headline at 10:47 AM, Apr. 14th. 2006

China will allow companies and individuals to invest abroad for the first time, possibly easing pressure on Beijing to revalue the yuan. 10:47 a.m.

http://online.wsj.com/public/us

[bernoulli]

#1 Note: Agreement between CFETS and CME March 10th, 2006
Still needed USA and Chinese Governmental approval.

#2. USA and Chinese Governments approve deal, April 14th, 2006

#3. An unexpected surprise, China significantly expands trading platform
particiption. April 14th, 2006.

#4. CFETS are now officially a SUPER CLEARING HOUSE for CME.

Last, I will post developments as they appear, I am sure this will be a
headliner throughout the world in coming days. Primarily due to the
Chinese loosening their currency restrictions.

[bernoulli]

Read this last. This is the deal the USA and the world have been trying to implement for the last eight years.

ASIA MARKETS
China steps up forex reforms
9:22 AM ET Apr 14, 2006

HONG KONG (MarketWatch) -- China's financial regulators have eased state controls on capital outflows, in a regulatory overhaul that will make it easier to for individuals and local firms to buy foreign currency.
The rule change will make it easier to buy and sell foreign currencies at domestic financial institutions from May 1, according to the statement published on the People's Bank of China website Thursday evening in Beijing.
Another statement on the PBOC site referring to banks and financial institutions, including life insurance companies and local brokerages, said changes were in the works that would soon enable overseas investment in stocks and bonds using a qualified local financial intermediary. The statement was sketchy on details on when the changes would be implemented.
The rule changes, announced ahead of Chinese President Hu Jintao visit to the United States next week, come as Beijing is attempting to defuse trade tensions and pressure on its monetary policy and exchange rate.
The statement said the changes were launched "in order to further satisfy the foreign exchange demand of domestic institutions and individuals and to facilitate trade development."
After May 1st companies will no longer need to seek regulatory approval to open foreign currency accounts for trade. Businesses with no previous foreign currency dealings will be able to open foreign exchange accounts with a limit of $500,000, up from $200,000 currently.
Chinese citizens will be able to buy up to $20,000 of foreign exchange a year. Previously the limit was related to the amount of time an individual spent abroad. Individuals will need to seek state permission for purchases above $20,000.
The new rules will also boost limits on foreign exchange holdings in cash accounts used by trading companies.
The changes are a potentially significant step in liberalizing China's tightly controlled capital account. The move is also widely expected as the mainland opens its banking sector to international competition.
On Friday China also cleared 54 foreign and local members of the country's interbank foreign-exchange market to trade foreign-currency swaps from April 24.
China's foreign exchange reserves ballooned $21.4 billion in March to a new record high of 875.1 billion. China added $8.5 billion to its foreign reserve stockpile in February, to overtake Japan as the world's largest foreign exchange holder.

[bernoulli]

April 14th chinese posting. Go to this link next in order to see actual article.
Take note of the last picture, the one that says GLOBEX, CME's trademarked system.

http://202.108.40.100/content/online2002/english/index.jsp

Before the signing celebration ceremony John Snow (first from left), US Secretary of the Treasury, chatted with Su Ning (second from right), Deputy Governor of the PBC, Xu Jinhong (third from right), Consul General of China at Chicago, and Lin Yuli (first from right), President of the CFETS.


John Snow (first from left), US Secretary of the Treasury, Su Ning (second from left, Deputy Governor of the PBC, and Lin Yuli (first from right), President of the CFETS were present at the luncheon party. Terry Duffy, Chairman of the CME Board delivered a speech on behalf of the two parties.

The delegation of the CFETS visited the GLOBEX control center and operation center.

[bernoulli]

First announcement. Be sure to note bolded portions paragraph #2 and paragraph #5. below.
March 10, 2006 CME and CFETS Agree to Offer Foreign Exchange and Interest Rate Futures and Options on Futures to the Chinese Market
CHICAGO. -CME, the world’s largest and most diverse financial exchange, and the China Foreign Exchange Trade System & National Interbank Funding Center (CFETS), China’s interbank foreign exchange and bond market, today announced that they have entered into a multi-year agreement under which Chinese financial institutions and investors will gain access to electronic trading of CME foreign exchange (FX) and interest rate products.

As part of the agreement, CFETS will become a CME super-clearing member, providing services for investors based in mainland China who will be trading CME interest rate and FX products. In addition, CME and CFETS will jointly provide consulting and technical services to CFETS members and staff. The terms of the agreement are subject to final approval by CFETS’ and CME’s governing bodies and regulatory agencies within China and the U.S.

“The signing of this agreement is a significant step in implementing our long-term Asian growth strategy,” said CME Chairman Terry Duffy. “It is the result of many years of effort by Leo Melamed, our Chairman Emeritus, to help develop our Asian strategy as well as the contributions of other key individuals including Phupinder Gill, our President and Chief Operating Officer, CME Retired Chairman Jack Sandner and President Xie Duo and his colleagues at CFETS.”

“On CFETS’ path to accomplishing further developments in China’s interbank foreign exchange market, providing valid channels of new products for our member institutions is important for our success in the future,” said CFETS President Xie Duo. “We are very pleased to work with CME on our market expansion and product innovation. Our cooperation with CME provides a great opportunity for us to learn current experiences and practices associated with developing and deepening international financial markets.”

“Today’s agreement reflects our commitment to establishing strategic partnerships that benefit our customers worldwide,” said CME CEO Craig Donohue. “Access to CME’s global interest rate and FX futures and options contracts will provide Chinese institutions and investors with a new range of foreign currency denominated investment and risk management tools that complement CFETS’ product offerings.”

The agreement will provide CFETS members with a channel to trade CME FX and interest rate futures and options on futures on the CME Globex® electronic trading platform. CME has agreed to provide consulting and training programs, both in Shanghai and Chicago, for CFETS staff that will focus on operational and risk management procedures. CME will conduct training on trading and related technology and risk management for CFETS members. Both institutions will also cooperate to market CME FX and CME interest rate futures and options in China.

“This agreement is a significant advancement of the cooperation between these two institutions initiated in 2004 when Su Ning, Deputy Governor of the People’s Bank of China and U.S. Treasury Secretary John Snow witnessed the signing of the initial Memorandum of Understanding,” said Leo Melamed, CME Chairman Emeritus. “This agreement contributes to the deepening liquidity in the foreign currency market in China.”

CFETS, an arm of the People’s Bank of China, the country’s central bank, is the official market for interest rate and foreign exchange products. CFETS recently implemented market reforms that modernized trading mechanisms in China. Based on the quotes of the trading institutions, CFETS is now calculating and officially publishing key benchmark rates such as the Renminbi benchmark exchange rate and Libor-like (CHIBOR) money market rates in China.

CME interest rate products, which constitute the exchange’s largest product group, enable financial institutions and other customers worldwide to hedge financial risks associated with interest rate moves. CME interest rate futures and options on futures can be used to manage interest rate risks ranging from one day to 10 years. CME trades more short-term interest rate futures and options than any other exchange in the world. Last year over 559 million interest rate contracts traded at CME with an average daily volume of 2.2 million contacts.

CME offers the largest regulated FX derivatives trading complex in the world, providing users with liquid, transparent markets, guaranteed execution and central counterparty clearing risk management on 36 individual FX futures and 23 options on futures products. CME received FX Week’s 2005 eFX award for the best electronic futures platform. Last year, over 51 million FX contracts with a notional value of over $6.2 trillion traded at CME.

China Foreign Exchange Trade System (www.chinamoney.com.cn), also known as the National Interbank Funding Center, is the only foreign exchange and interbank money market in China, created and governed by the People’s Bank of China (PBC, the Central Bank). Currently instruments traded at CFETS include spot and forward foreign currencies (US Dollar, Japanese Yen, the Euro currency, and HK Dollar against Chinese Renminbi), lending denominated in Renminbi as well as selected foreign currencies, governments, securities, and Repo transactions. Founded in 1994 as an outcome of forex system reform, CFETS also handles foreign exchange clearing for all the trading members in its foreign exchange market. Members of CFETS range from domestic commercial banks and their authorized branches, non-banking financial institutions such as insurance companies, securities companies, fund management companies, and financial companies, to foreign financial institutions that are authorized to handle Renminbi business. For more information on CFETS, log onto www.chinamoney.com.cn.

Chicago Mercantile Exchange Inc. (www.cme.com) is the world’s largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on CME Globex electronic trading platform and on its trading floors. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.4 billion per day in settlement payments in 2005 and managed $45.8 billion incollateral deposits at December 30, 2005, including $3.2 billion in deposits for non-CME products. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE, NASDAQ: CME), which is part of the Russell 1000® Index.

Statements in this news release that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent Quarterly Report on Form 10-Q, which can be obtained at its Web site at www.sec.gov. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Chicago Mercantile Exchange, CME, the globe logo and CME Globex are registered trademarks of Chicago Mercantile Exchange Inc. E-mini is a trademark of CME. CLEARING 21 is a registered trademark of CME and New York Mercantile Exchange, Inc. S&P, S&P 500, NASDAQ-100, Nikkei 225, Russell 1000, Russell 2000, TRAKRS, Total Return Asset Contracts and other trade names, service marks, trademarks and registered trademarks that are not proprietary to Chicago Mercantile Exchange Inc. are the property of their respective owners, and are used herein under license.

http://www.cme.com/about/press/cn/06-32CMEandCFETSAgreement17554.html

[bernoulli]

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!
I am posting the history of the worlds largest single deal approved
today, April 14, 2006. between China and the United States, in a
date wise fashion beginning here as post #1. I would suggest beginning reading the
next post then the next etc.

[bernoulli]

CME beats by 8 cents, Up $16. in pre-mrkt. Wahoo !!!!!