Dalian Commodity Exchange (DCE) issued a notice on March 1, 2019, approving Industrial and Commercial Bank of China and China Minsheng Bank as the designated depository banks for the general services of DCE upon examination and permitting them to engage in the capital deposit business of the general services platform. This is another move of DCE in further enriching the OTC (over-the counter) market banks to better optimize and expand the OTC market business after it ushered in the first batch of 4 designated depository banks for the general services (Bank of Communications, Shanghai Pudong Development Bank, Industrial Bank and Bank of China) in December, 2018.
A DCE official said that financial institutions and entity enterprises have shown great enthusiasm in learning about and involve in the OTC platform of DCE since the launching of its commodity swaps business on December 19, 2018. DCE carried out 7 sessions of training for institutional and industry clients in Dalian, Shanghai, Shenzhen, Hangzhou, Changzhou, etc, with a total of over 1,000 participants. DCE released the first group of 26 trading companies last year, and more than 30 institutions have submitted applications for the 2nd group of trading companies. Clients have carried out swaps business on PVC and PP indexes. Adding Industrial and Commercial Bank of China and China Minsheng Bank as the designated depository banks for the general services shows DCE’s efforts on keeping enhancing its capacity of serving the real economy and strengthening the futures-bank cooperation. Next, DCE will further enrich the participants of the OTC derivatives market, strengthen the efforts on promoting the commodity swaps, and optimize corresponding rules, systems and platform systems, with a view of facilitating the scale development of the OTC business and better satisfying enterprises’ differentiated need on risk management.
