FX Week

Bank of Communications gets derivatives go-ahead

This adds BoC to a small pool of banks that have received the go-ahead under a new legal framework on derivatives introduced earlier this year, including China Minsheng Bank, Mizuho Bank and Standard Chartered. CSFB, HSBC and Deutsche Bank are all currently awaiting approval.

The derivatives framework introduced in March enables banks to trade derivatives on their own accounts for profit – previously they were only allowed to use derivatives for hedging. Banks may now target corporate custom