Bank of China, BOC International Holdings and SGX expand collaboration on RMB market developments

Singapore Exchange (SGX), Singapore’s flagship securities and derivatives trading venue, Bank of China (BOC), one of the 5 biggest state-owned commercial banks in the People’s Republic of China and BOC International Holdings Limited (BOCI), Bank of China’s flagship investment banking platform announced today they are extending their collaboration on Renminbi (RMB) initiatives and embarking on joint activities. The respective framework for collaboration was signed today in Singapore and witnessed by Mr. Chen Siqing, President of BOC and Mr. Magnus Bocker, CEO of SGX in Singapore.

Bank of China and SGX

The collaboration is an extension of BOC and SGX’s Memorandum of Understanding (MOU) first signed in 2013, which will increase their cooperation to strengthen the RMB infrastructure in both markets. This will include more RMB-denominated products and solutions, such as the development of RMB-denominated commodities and derivatives contracts, as well as enhancing RMB clearing and settlement services. BOC is SGX’s first Chinese settlement bank for its derivatives market and a pioneer market maker for SGX’s RMB currency futures. Since the launch in October 2014, SGX RMB futures has successfully traded a total notional value of 35 billion yuan.

Ms Guo Ningning, General Manager of BOC Singapore, said, “In the Chinese Government’s “One Belt, One Road” strategy, Singapore’s location along the Maritime Silk Road is well positioned to take advantage of new development opportunities. The Bank of China Singapore first established its roots in Singapore 80 years ago and today, it is the largest RMB integrated services provider in Singapore and SGX’s biggest RMB currency futures market maker. BOC will work closely with SGX on several aspects including innovative collaboration, research and development on RMB-priced commodities contracts and RMB derivatives, as well as trading and settlement support enhancements to SGX and relevant customers. These initiatives will further enhance Singapore’s status as the largest offshore RMB center after Greater China, in addition, bolsters the development of Singapore financial markets.”

BOC International Holdings Limited and SGX

Under the framework for collaboration signed today, BOCI and SGX will provide customers with greater access to growth opportunities in China and Singapore markets, through joint marketing. This is BOCI’s first comprehensive collaboration inked with an exchange, and will see BOCI take up SGX memberships and market making arrangements.

Ms Li Tong, Chief Executive Officer of BOCI, said, “BOCI is the largest overseas Chinese investment bank and BOC’s flagship investment banking platform. With subsidiaries in Singapore, London, New York, Beijing and Shanghai, we have established an extensive network covering major global capital markets. Integrated with BOC global network, BOCI strives to provide full range of investment banking services to clients onshore and offshore. Today’s signing event ushers in a new era of collaboration between BOCI and SGX. We will further extend our cooperation in capital markets and assist Chinese enterprises in going global, thereby creating multi-win situations.”

Mr Chew Sutat, Executive Vice President of SGX, said, “We look forward to expanding our partnership with Bank of China and BOCI to provide global investors with more RMB-denominated products and services. Singapore is a key offshore RMB centre and today’s announcement reinforces SGX’s commitment to strengthen the connectivity between China and Singapore.”

Click here for the official release from SGX.

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