Morgan Stanley Obtains Futures Trading License in China

Morgan Stanley (NYSE:MS) has received approval to launch its futures business in China through a new subsidiary, Morgan Stanley Futures (China). This move marks the second significant entry of a U.S. bank into China's derivatives market.

The China Securities Regulatory Commission listed Morgan Stanley Futures (China) as a licensed entity on Friday. A spokesperson from Morgan Stanley confirmed the approval, which allows the bank to serve domestic customers while addressing the needs of offshore investors through China's qualified institutional program.

Morgan Stanley stated that it intends to work closely with relevant regulators and futures exchanges and plans to launch the business in the near future.

JPMorgan Chase & Co (NYSE:JPM) was the first major foreign bank to establish a wholly foreign-owned futures unit in China in 2020.

The trading volume in China's futures market rose to 568 trillion yuan (approximately $79.92 trillion) in 2023. This reflects a 6% increase compared to the previous year, indicating growing activity in the sector. The exchange rate at the time of publication was 1$ = 7.1067 Chinese yuan renminbi.