(Yicai Global) Sept. 12 -- The Chicago Mercantile Exchange and the Shanghai Gold Exchange, the world's largest physical gold exchange, will launch gold futures with pricing based on each other's benchmarks on Oct. 14 to increase liquidity in both markets.

The CME will list two contracts, one denominated in US dollars and the other in the Chinese yuan,  Xinhua News Agency reported today. Both will be settled using the Shanghai Gold Exchange Gold Benchmark PM Price. The sizes will be 1 kilogram and the US dollar contract will be priced in troy ounces and the yuan one in grams. 

The SGE will launch new T+N contracts – NYAuTN contracts on the same day. The yuan-denominated futures products will be linked to COMEX Gold Futures Asia Spot Prices. The sizes will be 100 grams.

In March 2017, the Dubai Gold and Commodities Exchange listed a Shanghai gold futures product to widen its investors' access to the Chinese market. 

Editor: Emmi Laine