China Construction Bank becomes first Chinese bank to join the LBMA Silver Price
International derivatives marketplace CME Group Inc (NASDAQ:CME) and Thomson Reuters Corp (NYSE:TRI) have announced that China Construction Bank Corporation (SHA:601939) is joining the LBMA Silver Price as a new member.
CME Benchmark Europe Limited and Thomson Reuters have operated the LBMA Silver Price since August 2014 when they took over from the London Silver Market Fixing Limited. CCB becomes the first Chinese bank and the sixth price participant, joining HSBC Bank USA NA, JPMorgan Chase Bank, The Bank of Nova Scotia, The Toronto Dominion Bank and UBS AG.
This development comes several months after CME Group and CCB signed a Memorandum of Understanding (MOU). Under the memorandum, CCB would support CME Group’s plans to offer Offshore Chinese Renminbi (CNH) futures contracts with physical delivery in London for the first time, with CCB acting as designated clearing bank of RMB in London. Under this MoU, CCB agreed to participate in the LBMA Silver Price, as administered by CME Benchmark Europe Limited, as well as to facilitate the trading of CME Group products for CCB’s customers in China.
William Knottenbelt, Senior Managing Director, International, CME Group, says,
“We are delighted to welcome China Construction Bank as the first Chinese participant to the LBMA Silver Price. Increasing participation in the auction ensures the relevance and integrity of the benchmark. The addition of one of China’s leading banks, CCB, to the process will be welcomed by other silver market participants.”
Mr. Gu Yu, General Manager of the Financial Markets Department, CCB, says,
“CCB is delighted to be the first Chinese Bank to become a participant in the Silver Price auction process in London. This further builds on our combined efforts to boost RMB liquidity and products in Europe.”