SINGAPORE (Apr 17): Singapore Exchange may have quashed rumours that it is establishing a trading connection between itself and its Chinese counterparts.

But that has not stopped it from forging a closer relationship with Mainland financial institutions to boost its business.

The bourse operator this morning said it has signed respective framework for collaborations with the Bank of China (BOC) and BOC International Holdings Limited (BOCI) on Renminbi initiatives and embarking on joint activities that will contribute to the growth of both financial markets.

The collaboration is an extension of BOC and SGX’s Memorandum of Understanding (MOU) first signed in 2013, which will increase their cooperation to strengthen the RMB infrastructure in both markets.

This will include more RMB-denominated products and solutions, such as the development of RMB-denominated commodities and derivatives contracts, as well as enhancing RMB clearing and settlement services.

BOC is SGX’s first Chinese settlement bank for its derivatives market and a pioneer market maker for SGX’s RMB currency futures. Since the launch in October 2014, SGX RMB futures has successfully traded a total notional value of 35 billion yuan ($7.6 billion).

Under the framework for collaboration signed today, BOCI and SGX will provide customers with greater access to growth opportunities in China and Singapore markets, through joint marketing.

This is BOCI’s first comprehensive collaboration inked with an exchange, and will see BOCI take up SGX memberships and market making arrangements.

Singapore Exchange is trading down 8 cents to $8.37 as at 10:19 a.m.