The China Foreign Exchange Trade System & National Interbank Funding Center (CFETS) and ICAP plc (IAP.L), the world's largest interdealer broker, are approved by CBRC to form a joint venture - Shanghai CFETS-ICAP International Money Broking Co. Ltd., based in Shanghai.
CFETS is owned by the People's Bank of China and runs the country's interbank market and foreign exchange markets. The new joint venture will provide voice broking services to the money, bond and derivatives markets in both the RMB and international markets.
Xie Duo, President of the CFETS, said "With the expansion of market demand there are significant opportunities for the development of the interbank market for financial products. Compared with the global financial market, China's interbank market still has great potential for development and working with ICAP in this joint venture will help us accelerate that development."
Michael Spencer, ICAP Group Chief Executive, commented, "China represents a significant opportunity for ICAP to take part, together with the CFETS, in the rapid development and growth of the interbank financial markets. This is an exciting prospect for ICAP, in the next few years the volume of transactions in Chinese wholesale financial products will rise rapidly and China will be recognised globally as one of the most important and liquid markets."