HONG KONG (Reuters) – Morgan Stanley has received final authorization to establish a futures business in China through a newly created subsidiary, marking its entry as the second major U.S. player in the derivatives market of the world’s second-largest economy.
The China Securities Regulatory Commission (CSRC) officially recognized Morgan Stanley Futures (China) as a licensed entity on Friday, according to a recent filing from the regulator.
A spokesperson for Morgan Stanley confirmed the approval, which enables the U.S. bank to cater to both domestic clients and offshore investors participating in China’s qualified institution program.
In a statement to Reuters, the firm expressed its commitment to collaborating closely with relevant regulatory bodies and futures exchanges, anticipating a swift launch of its operations.
JPMorgan Chase & Co. previously set a precedent as the first substantial foreign bank to gain full ownership of a futures unit in China, achieving this milestone in 2020.
The trading volume in China’s futures market reached 568 trillion yuan (approximately $79.92 trillion) in 2023, reflecting a 6% increase compared to the previous year, across six primary futures exchanges.
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