Morgan Stanley has won final approval to launch a futures business in China via a newly established unit, becoming the second major U.S. entrant in the derivatives market of the world's second-largest economy.
Morgan Stanley Futures (China), wholly owned by the U.S. bank, was for the first time listed as a licensed institution by the China Securities Regulatory Commission on Friday, a filing from the regulator showed.
A company spokesperson confirmed the approval, which permits the U.S. bank to serve domestic clients or cater to the demand of offshore investors under China's qualified institution program.
"We will continue to work closely with relevant regulators and futures exchanges and we look forward to launching the business soon," the firm said in a statement to Reuters.
Rival JPMorgan Chase & Co became first sizable foreign bank to fully own a futures unit in China in 2020.
Trading volume of China's futures market reached 568 trillion yuan in 2023 across six main futures exchanges, up 6 percent from a year ago.
(Reuters)
