Interdealer broker Icap aims to be the first foreign company to enter the Chinese money broking sector, after Chinese regulators said they would relax rules previously banning the practice.Icap will set up a joint venture with an unnamed Chinese partner. Michael Spencer, Icap chief executive, said: "China represents a significant opportunity for Icap to take part in, together with a joint venture partner, in the rapid development and growth of the interbank financial markets. This is an exciting prospect for Icap."
The China Banking Regulatory Commission (CBRC) said on June 29 that pilot money-broking ventures would be allowed, but foreign companies would need to set up joint ventures with "eligible domestic financial institutions and internationally renowned brokers" in China to participate.
"The introduction of money brokers is instrumental in enhancing the Chinese market’s liquidity and transparency, as well as improving the efficiency of capital utilisation and allocation," the CBRC added. No timescale for the liberalisation has been announced.
More on Exchanges
NYXBT will initially be based off data from Coinbase Exchange.
German exchange group signs joint venture deal with CFFEX and Shanghai Stock Exchange
A mostly positive mix of Q1 results also yield big increases in data revenues for some exchanges.
Volumes jump following revamp of Sydney bourse's clearing incentive scheme
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.