HSBC to Offer Futures Margin Depository Services in China

HSBC Bank (China) Company has received a license from the China Financial Futures Exchange (CFFEX) to become a Futures Margin Depository Bank (FMDB).
By Janet Du Chenne(59204)
HSBC Bank (China) Company has received a license from the China Financial Futures Exchange (CFFEX) to become a Futures Margin Depository Bank (FMDB).

HSBC China will be the first foreign bank in mainland China to offer futures margin depository services to Qualified Foreign Institutional Investors (QFIIs), providing clients with greater convenience and efficiency in trading index futures.

Under CFFEX’s regulations, margins for futures trading among investors, futures brokers and exchanges are required to be deposited and cleared through a FMDB. In January 2013, the first batch of QFIIs started trading index futures, and CFFEX introduced administrative measures in August for the QFIIs’ custodian banks to apply for licenses to provide margin depository services. HSBC China was the first foreign bank in mainland China to apply for and subsequently receive the license.

Andy Ng, head of HSBC Securities Services in China, said: “An increasing number of QFIIs and RQFIIs (Renminbi Qualified Foreign Institutional Investors) are trading index futures and have a growing need for margin depository and clearing services. This license allows us to further enhance our services for QFIIs and RQFIIs, helping them simplify the procedure for trading index futures, increase efficiency in clearing and lower the risks in margin management and deposit outflows. HSBC is committed to providing clients a complete asset servicing solution in China and is actively developing new services to satisfy client needs as they enter new investments.”

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