CME, Bovespa Strike Cross-Listing Deal

The Chicago Mercantile Exchange Group (CME) has struck a deal with Brazil’s BM&FBovespa (BVMF) for the cross listing and licensing of traded index- and commodities-based futures, it says. Under the deal, the CME will list dollar-denominated futures of the Bovespa, while the BVMF will offer dollar-denominated S&P 500 index futures settled in BRL. The Brazilian market will also list the Chicago Board of Trade’s Mini-sized Soybean futures and the New York Mercantile Exchange’s Light Sweet Crude Oil (WTI) futures in the second and third quarters of this year, respectively. Officials at the CME were not immediately available for comment. A BVMF investor relations officer says the deal involves an agreement to share the revenue generated by the trading of these securities, in which the owner of the security will take the larger share of the revenues. He declined to offer details of the deals, however. The BVMF official said the market will also pay a license for the use of the S&P 500 product and for the market data generated by the trading of the futures contract at the CME.