The internationalization of iron ore futures is giving new opportunities for the banking industry to serve the futures market and develop international business. Recently, the Bank of China was approved to be the first batch of offshore customer futures margin depository bank of Dalian Commodity Exchange, and it was the first to complete the transaction of US dollar deposits and withdrawals.
In February of this year, the China Securities Regulatory Commission approved Dalian Commodity Exchange iron ore futures as a specific product and allowed the introduction of foreign traders. The opening of China’s iron ore futures officially started counting down. The opening up of iron ore futures enables domestic and foreign traders to compete on the same platform, which accurately reflect the changes in global iron ore trade supply and demand and macroeconomic impacts. The establishment of an internationally-recognized, open and transparent futures price benchmark is significant for China to hold the pricing power of international iron ore.
The Dalian Branch of Bank of China also held the Seminar on the Internationalization of Iron Ore Futures and Banking-futures cooperation. Dalian Commodity Exchange and experts from the Bank of China focused on the general idea of internationalization of iron ore futures and related banking services, attracting 56 futures companies. The heat of iron ore futures is evident.
The leader in charge of the Financial Institution Department of the Bank of China stated that Bank of China will take advantage of internationalization, specialization and diversification to continuously optimize business processes and innovate financial products to support Dalian Commodity Exchange and to expand domestic and overseas markets while facing the new opportunities brought by the internationalization of iron ore futures. It also provides comprehensive financial services to various types of customers around the world and further enhances the international influence of the China banking.