Obtaining the Depository Qualification of Zhengzhou Commodity Exchange, Industrial Bank Extends its Futures Business

Recently, as learnt by the reporter from Industrial Bank (IB), Zhengzhou Commodity Exchange (ZCE) gave an official reply by letter, approving IB to become one of the first joint-stock commercial banks designated by the exchange for futures security depository. This is the third futures exchange where IB obtains the qualification of the first group of designated depository banks succeeding China Financial Futures Exchange (CFFEX) and Dalian Commodity Exchange (DCE). Thus, IB has obtained the qualification for security depository of three out of four futures exchanges in China, accelerating its expansion of business presence.

It is said that after obtaining the qualification of designated depository bank of CFFEX and DCE, IB has officially provided the two exchanges with futures security depository and settlement services after accomplishing the technical system connection with them quickly under their support. Depending on the extensive bank-futures cooperation foundation and advantages in integrated institutional businesses established over years, IB started business cooperation with futures companies in the areas of futures security depository and bank-futures transfer at a fast rate. Up till now, IB has witnessed a scale of futures security depository approaching tens of billions of RMB and the daily settlement volume with the two exchanges hit over RMB 2 billion.

According to the relevant person-in-charge of the Futures Finance Department of IB, the Bank has established cooperation with nearly 100 futures companies, launching a range of products and services targeting at the futures market and futures customers, including depositing of funds owned by futures companies, standard warehouse warrant pledged loan, hedging movables pledged financing, custody of assets management products of futures companies, and customer resource sharing, etc.

On the basis of consolidating the existing foundation of bank-futures cooperation, the person-in-charge indicated, IB would improve current hedging movables pledged financing and standard warehouse warrant pledged financing businesses, intensify the agency sale of futures-related assets management products, continue boosting businesses including integrated credit extension with futures exchanges and futures companies, and self operation of financial futures, and endeavor to provide more comprehensive and specialized financial services for the futures market.

Some analysts point out that futures market cannot develop without the participation of banks and other financial institutions, and with more commercial banks obtaining the depository qualification, it will play an actively boosting role in strengthening the mutual integration of futures market and various financial element markets and improve the overall service level of the futures sector.

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