Morgan Stanley Approved for Futures Business in China

By Selena Li

HONG KONG (Reuters) – Morgan Stanley has won final approval to launch a futures business in China through a newly established unit, making it the second major U.S. player in the derivatives market of the world's second-largest economy.

Morgan Stanley Futures (China), wholly owned by the U.S. bank, was first listed as a licensed institution by the China Securities Regulatory Commission on Friday, according to a filing from the regulator.

A company spokesperson confirmed the approval, which allows the U.S. bank to serve domestic clients or cater to the needs of offshore investors under China's qualified institution programme.

"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 (NYSE:JPM) became the 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 ($79.92 trillion) in 2023 across six main futures exchanges, a 6% increase from the previous year.

($1 = 7.1067 Chinese yuan renminbi)