China will allow financial firms apart from banks to trade in its interbank foreign exchange market from January 1, the government said on Tuesday in another step to deepen the country's financial markets. Sources with knowledge of the matter had told Reuters in the past two months that China was set to relax the rules for its interbank currency market by allowing non-banks, including brokerages, insurers and trust firms, to trade in the interbank foreign exchange market.
The new rules will allow firms that trade derivatives and currencies in the spot market to also work in the interbank foreign exchange market without the need for further government approvals, the State Administration of Foreign Exchange (SAFE) said. The rules were published online on Tuesday, though they were finalised on December 5. SAFE, China's currency regulator, did not say which firms counted as financial companies, though it singled out currency brokerages as among those that do not need further approval to operate in the interbank market.
Comments
Comments are closed.