May Announces Launch of R5-SHCH Connect

Theresa May today announced the launch of R5-SHCH Connect, a new service which links banks in China with London’s FX market.

May announced that the service was live whilst in Shanghai, as part of her first visit to China as Prime Minister. R5 was invited to join the delegation of British businesses on the Prime Minister’s visit, which includes HSBC, LSE, BP, Standard Chartered and Standard Life Aberdeen.

The R5-SHCH Connect is designed to enable domestic banks in China to access the London FX market. The new service is a partnership between London’s R5 and the Shanghai Clearing House, announced by UK Chancellor Philip Hammond in December as part of the 9th UK China Economic Dialogue.

Jon Vollemaere, CEO of R5 comments: “R5-SHCH Connect is a shining example of what can be achieved when the UK and China work in cooperation, driving innovation and capturing opportunities that emerge as the financial markets evolve.”

He adds: “The new service offers benefits for all institutions trading FX. It provides Chinese banks with increased access to the global FX market, it enhances liquidity in major currencies, and it advances the internationalisation of the RMB. Since this initiative was announced at the end of last year, we have seen great interest from China’s banks, as well as institutions already trading in the London market. These institutions will benefit from additional counterparties and deeper liquidity, provided by new Chinese entrants.”

The first phase of R5-SHCH Connect has gone live with eight Chinese banks connecting to the London FX market. In a release issued today, R5 says that more onshore Chinese banks will be added throughout 2018.

 

Galen Stops

Share This

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit

Related Posts in