Alt Investments
HSBC China Obtains Clearance As A Futures Margin Depositary Bank
China Financial Futures Exchange has granted a licence to HSBC Bank (China) to become a futures margin depository bank.
China Financial Futures Exchange has granted a licence to HSBC Bank (China) to become a futures margin depository bank, the bank said in a statement.
HSBC will be the first foreign bank in Mainland China to offer futures margin depository services to qualified foreign institutional investors. Given the increasing number of QFIIs and RQFIIs trading index futures, there is a growing need margin depository and clearing services.
Under the CFFEX's regulations, margins for futures trading among investors, futures brokers and exchanges are required to be deposited and cleared through a FMDB. The first batch of QFIIs started trading index futures in January 2013. The CFFEX introduced administrative measures for custodian banks to apply for licences in August.
