New investment option may be permitted in two or three years

Foreign investors will be able to trade China's new stock index futures within two or three years, according to Leo Melamed, chairman emeritus of CME Group Inc, the world's biggest futures exchange.

The China Securities Regulatory Commission said last week that it will allow trading of Chinese stock-index futures, agreements to buy or sell an index at a present value on an agreed-upon date. The regulator has yet to release details on who will be allowed to trade the futures.