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Morgan Stanley Receives Approval to Launch Local Futures Unit in China

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Morgan Stanely (MS - Free Report) has received final approval to begin a futures business in China through a newly established unit. With this, the company became the second major U.S. player after JPMorgan to enter the derivatives market in the world's second-largest economy. This was reported by Reuters.

Morgan Stanley Futures (China), entirely owned by the U.S. bank, was listed for the first time as a licensed institution by the China Securities Regulatory Commission on Friday, per a regulatory filing.

Rationale Behind MS’ Unit Launch

This approval enables Morgan Stanley to serve local clients and address the demands of foreign investors under China’s qualified institution program.

“We will continue to work closely with relevant regulators and futures exchanges and we look forward to launching the business soon,” the firm stated.

This move aligns with Morgan Stanley’s organic growth strategy and will aid the business's trading revenues. This August, the company launched bitcoin exchange-traded funds (ETFs) through its advisors to cater to wealthy clients' demands for the product. Further, the company expanded its investments in Latin America this June, while a new office was launched in Abu Dhabi in February to strengthen its presence in the Middle East region.

Morgan Stanely’s Zacks Rank & Price Performance

Over the past six months, MS’ shares have gained 22.5% compared with the industry’s 12.3% growth.

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Currently, Morgan Stanley carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Organic Growth Efforts by Other Finance Firms

Charles Schwab Corp. (SCHW - Free Report) plans to expand its 24-hour trading accessibility to cover all stocks in major U.S. indexes alongside numerous ETFs. These changes are set to begin soon.
 
Schwab is aiming for a gradual rollout of the expanded trading capacity, beginning with its most active traders, and is unlikely to initiate the process until the week after the Nov. 5 U.S. presidential election.

Barclays PLC (BCS - Free Report) is considering returning to Saudi Arabia as it aims to capitalize on the kingdom’s rising need to access capital markets globally.
 
BCS intends to expand its team across the Middle East region, which includes Dubai and Abu Dhabi alongside Riyadh.


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