| HSBC, Citigroup Incorporate in China for Yuan Service (Update1)
April 2 (Bloomberg) -- HSBC Holdings Plc and Citigroup Inc. became locally incorporated in China, paving the way for them to offer local-currency services and take a bigger slice of the nation's $2 trillion of household savings. Standard Chartered Plc. and Bank of East Asia Ltd. also completed local incorporation. The four are the largest overseas banks in China and have more than 90 outlets there between them. They need approvals from the banking regulator to begin yuan- denominated services. Foreign banks must incorporate in China to offer yuan-based bank cards and mass-market services, according to rules that took effect in December. The government is giving overseas financial institutions greater access as part of a deal it struck when joining the World Trade Organization five years ago.
Currencies: Signs of recovery elevate won
HONG KONG: The South Korean won rose to the strongest in six weeks on Wednesday as overseas investors bought stocks for a second day on signs the economy is recovering from a slowdown. "Rising stocks are leading expectations of more inflows of funds, boosting the won," said Hideki Hayashi, a Tokyo-based foreign-exchange strategist at Shinko Securities. "Steady export numbers in addition to expectations the free-trade agreement with the U.S. will help increase overseas sales are also supportive for the won." The won rose to 936.30 against the U.S. dollar, according to Seoul Money Brokerage Services. It touched 935.20, the highest since Feb. 16. Elsewhere, Taiwan's dollar touched a two-week low on speculation overseas investors will borrow the currency to purchase higher-yielding assets abroad.
Reuters, CME Team Up To Open Spot Currency Exchange
This morning Reuters and the Chicago Mercantile Exchange announced the official opening of FXMarketSpace, allowing for anonymous trading in spot foreign exchange against the dollar on the euro, yen, sterling, Australian dollar, Swiss franc, Canadian dollar as well as four cross-currency pairs. The companies are claiming that although the exchange just opened, customer numbers are already "significantly ahead of expectations." Reuters is using its know-how to provide trading access, trade notification and market data with the CME is bringing clearing and trade matching services to the mix. Each company has 50% ownership. The global market for ForEx trading currently stands at greater than $2 trillion a day and many analysts predict that number could cross $3 trillion by year's end. The companies expect the exchange will be profitable by 2008.
CalPERS Selects LavaFX Product Suite for Foreign Exchange Trading
SACRAMENTO, Calif. and NEW YORK--(BUSINESS WIRE)--The California Public Employees' Retirement System (CalPERS), and Lava Trading Inc., the innovative technology firm that develops high-performance trading solutions for the financial services industry, today announced that CalPERS has selected the LavaFX® product suite for foreign exchange trading. CalPERS will use the platform to execute trades in its new Active Currency Overlay Portfolio, as well as in other internal portfolios. Built upon Lava's leading, proprietary technology core, LavaFX provides a premier offering in electronic foreign exchange trading that is transforming the FX marketplace. It provides a Central Limit Order Book of live dealable prices, full price transparency and depth of book, and the ability to place bids and offers, together with Lava's sophisticated order types.
SBI to offer foreign currency services to Chinese clients
Beijing, March 17 (PTI): India's largest commercial lender, State Bank of India (SBI), on Friday became the first Indian bank to get a license for offering foreign currency services to Chinese customers. "We have just received the second license from the Chinese authorities," Chief Executive Officer of SBI-Shanghai Branch, T C A Ranganathan, said in a telephonic interview from Shanghai. According to Chinese banking regulations, SBI, Shanghai, could earlier offer banking services only to foreigners or foreign enterprises in foreign currency. "We have reached yet another milestone in operations in the world's fastest growing economy. This is a major milestone for us," he said. "Now we are in a position to offer a range of services to Chinese customers as well," Ranganathan said, expressing full confidence in tapping the galloping bilateral trade and mutual investments between India and China.
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