Icap and the China Foreign Exchange Trading System & National Interbank Funding Center (CFETS) formally launched their joint venture – the snappily named Shanghai CFETS-ICAP International Money Broking Company – yesterday. One of the wires actually reported that Icap had gained approval for the JV, which it holds 33% of, a couple of days before the official announcement.
The company will provide voice broking to the money, bond and derivative markets in both Renminbi and other currencies. Time will tell how successful the JV will prove, but nobody will question Icap’s logic given China’s potential. “China is at a critical point in the development of its financial markets, and this joint venture offers a unique opportunity to participate in the growth of the Chinese interbank market – potentially one of the largest in the world,” said Mark Yallop, Icap’s group chief operating officer in a press release.