New FX and money brokerage jv to be formed in China

23 July 2012

Thomson Reuters and the wholesale broker GFI Group is to set up a joint venture with local firm SDIC Trust Co. Ltd in Beijing to create a foreign exchange (FX) and money brokerage for the domestic Chinese financial markets, subject to regulatory approval.

An application to establish the firm is being compiled for submission to the Chinese authorities as soon as possible. The establishment of the joint venture, if it is approved, would represent the first step in the process of launching a full service voice and electronic brokerage for the domestic money markets in China. The three proposed partners say it shows their commitment to supporting the further development of China’s financial markets. The joint venture would serve the needs of financial market participants trading renminbi (RMB) and other market instruments in China.

GFI Group, Thomson Reuters and SDIC Trust say they already meet the prerequisites required to obtain an application for a license; but the official application materials still need to be approved before any further action be taken beyond this initial announcement of the plan to set up the money brokerage firm.

“Thomson Reuters has a long history in China and in serving the professional money markets, both in China and globally,” said David Craig, president of the financial and risk unit, at Thomson Reuters. “We are excited to bring this heritage to our joint venture with GFI Group and SDIC Trust and look forward to fulfilling the remaining requirements to obtain the license and support China as it continues to develop its money markets. Following the recent launch of Eikon, our next generation financial desktop, in Chinese, this joint venture is another example of how Thomson Reuters is working to meet the needs of financial professionals in China.”

According to Colin Heffron, president of GFI Group Inc joining forces and combining the respective partners strengths in technology, broking, communications/data and infrastructure, will create a strong business that he believes will be beneficial to the development of the China’s financial markets. The continuing internationalisation of the RMB is another strong driver.

“As the Chinese shareholder in the joint venture, we believe in the industry advantages which both Thomson Reuters and GFI Group will bring to our company,” said Lv Yimin, general manager, at SDIC Trust. “All three parties of the joint venture are optimistic about the development of the money broker industry in China, and will focus on the business with a long-term perspective. Through our joint cooperation and efforts, we aim to provide our clients with the best possible money brokerage services.”

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development