Shanghai Citibank (China) Co., Ltd. ("Citi China") announced today that it has received a Futures Margin Depository Bank ("FMDB") license from the China Financial Futures Exchange ("CFFEX") to act as a Futures Margin Depository Bank (FMDB) in the China Futures market for clients.
"As the first American bank granted the FMDB license in China, this new license enables Citi to provide futures margin deposit services to our QFII and RQFII clients," said Christine Lam, President and Chief Executive Officer of Citi China. "FMDB is a cash-related service and this adds to our ability to serve clients and demonstrates our commitment to global clients to provide them a complete market access solution for China. We are honored to be making a further contribution to support the continued opening up of Chinese financial markets."
In China, QFIIs and RQFIIs who trade equity index futures instruments on the CFFEX must open a margin deposit account with a licensed FMDB. The FMDB plays a crucial role in facilitating the movements of margin payment associated with futures traded on the CFFEX.
"Citi China's FMDB license is a piece of welcoming news for many of our QFII and RQFII clients," Harry Peng, Managing Director, Head of Prime, Futures and Securities Services (PFSS) for Citi China. "We are in a unique position as the only American bank that can offer a complete solution to international investors to invest into China, whether it's equity or fixed income, directly (QFII, RQFII, and CIBM direct scheme) or via Hong Kong (Stock Connect and Bond Connect), end to end, from sales, trading, research to custody, clearing and settlement. We have the full licenses and capabilities in China on the ground."
In providing cross-border securities services, Citi has more than 20 years of experience in China's capital market custody services, witnessing the opening up of China's capital markets. Citi has fully participated in the development of China's QDII and QFII markets, including policy recommendation, domestic and international Market Development. As a pioneer in the market, Citi has scored many achievements in China. For instance, Citi was among the first batch of banks to receive the QFII custodian license back in 2002, and we are also among the first batch of foreign banks to provide QDII custodian services for insurance companies and banks. Furthermore, in 2017, Citi became the first American bank to be granted the Type A Bond Settlement Agent license to act as a bond settlement agent in the China Interbank Bond Market.
Yigen Pei, Managing Director, Head of Citi China Treasury and Trade Solutions (TTS), said, "It has been 20 years since Citi started to offer cash and treasury services in the China market. FMDB license is an important milestone that sees us extend our cash and treasury services to clients that trade on financial exchanges."
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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Citi first established an office in China on May 15, 1902, in Shanghai. In April 2007, Citi was among the first international banks to locally incorporate in China. Citi's locally incorporated entity is known as Citibank (China) Co Ltd, which is wholly owned by Citibank N.A. Today Citi is a leading international bank in China with a footprint in thirteen cities across China. Citi, does business in more than 160 countries and jurisdictions, is the most global of all international banks in China.