* MoU calls for joint product development, marketing
* Oilseeds one area to be studied in agri focus-Euronext
* Euronext sees growth in commodities as it enters IPO
(Recasts with comments from Euronext on agricultural
By Gus Trompiz
PARIS, June 12 European market operator Euronext
announced on Thursday plans to develop ties with China's Dalian
Commodity Exchange in a move to boost its agricultural
derivatives business following its spin-off from
Euronext, which kicked off an initial public offering on
Tuesday, operates Paris-based agricultural derivatives and has
stressed innovation in derivatives as a focus for the company
after its IPO.
In a memorandum of understanding, Euronext and the Dalian
Commodity Exchange (DCE) agreed to cooperate on research and
product development and to promote each other's activities.
"You can expect this to have an agricultural focus," Lee
Hodgkinson, Euronext's head of global markets and sales, told
Reuters by telephone, adding that this marked a first such
international partnership for Euronext in derivatives.
Euronext's main commodity activity is the milling wheat
futures <0#BL2:> that have become a benchmark for the European
market. It is also expanding its oilseed offering, with plans to
add rapeseed meal and oil contracts in the second half of this
year to its existing rapeseed futures <0#COM:>.
"Our commodities franchise is a fast-growing area within
Euronext as we launch new products and build our footprint
internationally. Today's signature marks another important
moment in its development," Dominique Cerutti, CEO of Euronext,
said in a statement.
DCE, which offers agricultural and other commodity products
such as iron ore, is an international reference for the oilseed
sector through its soybean <0#DSA:>, soymeal <0#DSM:> and soyoil
As the world's biggest importer of soybeans, China is a
major influence on the global market for the oilseed.
Oilseeds "will be an area of exploration" for Euronext and
DCE in their cooperation, Hodgkinson said.
He declined to give details on potential joint initiatives
or say when they might be launched.
Euronext's wheat futures have attracted the interest of CME
Group, the world's largest futures exchange operator,
which is seeking to enter the European wheat market.
CME said earlier this week it is considering either a
partnership with Euronext or developing its own European wheat
contract, as part of a push into the European commodity market.
(Reporting by Gus Trompiz; additional reporting by Valerie
Parent; Editing by Dale Hudson and Jason Neely)