ICBC Standard Bank Gets OK to Operate as U.S.-Registered Swap Dealer
May 27 2016 - 5:50PM
Dow Jones News
ICBC Standard Bank PLC has become the first Chinese bank to
operate as a U.S.-registered swap dealer, its latest international
expansion effort.
The bank said Friday that it had received approval from the
Commodity Futures Trading Commission to be a "provisionally
registered swap dealer," a role that would allow the bank to offer
over-the-counter derivatives to U.S. clients.
A swap dealer acts as a market maker in the swap market, often
by entering into swap agreements with counterparts. The market has
come under heightened scrutiny after the financial crisis.
ICBC Standard, which is 60% owned by the Industrial and
Commercial Bank of China Ltd., will be the latest to join the 106
financial institutions that were designated by the CFTC as swap
dealers as of May 10.
In a statement, Marc van der Spuy, chief executive of ICBC
Standard, said "this swap dealer designation is crucial" for its
growth in the U.S.
The bank was founded in February 2015 after ICBC, the world's
largest bank by assets, acquired a stake in Standard Bank's
London-based Global Markets business.
Earlier this month, ICBC Standard agreed to buy one of Europe's
largest vaults from Barclays PLC, in a move to push into the
business of precious-metal clearing and trading.
Write to Carolyn Cui at carolyn.cui@wsj.com
(END) Dow Jones Newswires
May 27, 2016 17:35 ET (21:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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