Exclusive: China has considered opening its $520 billion ETF market to Western market makers, sources say

Selena Li - Reuters - 11/04
China has been looking at allowing Western firms such as Citadel Securities and Jane Street to act as market makers in its rapidly growing exchange-traded fund (ETF) sector, two people with direct knowledge of the matter said.
  • China wants to improve trading efficiency and lower costs, sources say
  • Citadel Securities, Jane Street and Optiver may be the first to benefit, sources say
  • Trade war with U.S. could delay official green light from Beijing, sources say
HONG KONG, April 11 (Reuters) - China has been looking at allowing Western firms such as Citadel Securities and Jane Street to act as market makers in its rapidly growing exchange-traded fund (ETF) sector, two people with direct knowledge of the matter said.
Over the last two years, Chinese authorities have issued more licences and encouraged the development of domestic market makers. But international market makers are more experienced in providing liquidity to ETFs and the move would boost trading efficiency and lower costs, the people said, declining to be identified due to the sensitivity of the matter.

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The sources cautioned, however, that the escalating trade war with U.S. that has seen China saddled with tariffs of 145% this year could delay Beijing's official green light for U.S....
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