The ASX has signed a memorandum of understanding (MOU) with the China Futures Association (CFA) at a CFA conference in Hangzhou, China.
The China Futures Association is an industry self-regulatory organisation focused on the development of the futures industry, an ASX-issued statement said.
ASX deputy chief executive Peter Hiom said: “We look forward to learning more about the strong development of the equity and commodity futures markets in China.”
“The MOU enables ASX to develop a better understanding of China’s futures markets at a time when these markets are evolving rapidly, and the trade and investment flows between Australia and China are growing.
“ASX operates some of the most liquid and mature interest rate and equity derivatives markets in the Asia-Pacific region,” he said.
CFA chairman Liu Zhichao said: “With the joint efforts of both parties, we truly believe that this collaboration will further promote the development of the China futures industry.”
“We look forward to working with ASX in the years ahead,” Mr Zhichao said.
The notional turnover in the Australian dollar interest rate futures market was $42 trillion in 2014/2015, ranking it the largest in Asia and within the top five globally.
The derivatives and OTC markets generated roughly 32 per cent of ASX Group revenues in 2014/2015 – making it ASX’s largest business.
"The MOU complements the heads of agreement ASX signed with the Bank of China in November 2014 to expand the strategic cooperation between the parties to develop the Renminbi (RMB) as a currency in Australia’s financial markets," the statement said.
ASX and the Bank of China launched a RMB settlement service in July 2014, which enables Australian companies to pay and receive RMB in an effort to reduce the risk and cost of international business.