Deutsche Bank has become the latest institution to gain a licence to trade derivatives onshore in China. A Deutsche official in Singapore told RiskNews that the China Banking Regulatory Commission (CBRC) gave the German bank the go-ahead yesterday.Deutsche joins a growing number of banks that have been given the green light to trade derivatives in China. The list includes: ABN Amro, Bank of Tokyo-Mitsubishi, HSBC and the Shanghai Pudong Development Bank.
Under new regulations, which came into effect on March 1, licensed local and foreign banks can trade derivatives on their own accounts for profit. Previously, derivatives could only be used for hedging.
The rules also allow licensed foreign banks to conduct business directly with domestic corporate clients onshore. Before, they were restricted to trading foreign currency-denominated derivatives with Chinese financial institutions that had appropriate foreign exchange licences.
More on Foreign Exchange
Target redemption forwards declining in popularity for macro reasons
EC ‘forgets’ to mention sterling in letter defining forex contracts
Target redemption forwards with capped loss structure set for launch
CNT fixing will be a boon for Taiwan’s derivatives market
Sign up for Risk.net email alerts
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
Isda directors warn on fragmentation, access and liquidity - but expect problems to pass
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.