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
Limiting response time for market-makers may become outdated method
Pricing difficulties since SNB currency floor removal cause friction
Bank of Thailand announces measures
China onshore forex derivatives market a fraction the size of its EM peers
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.