The Dalian Commodity Exchange (DCE) said on Monday it has been approved as a recognised market operator (RMO) by Singapore’s financial regulator, as the Chinese bourse seeks to bring in more foreign clients to its iron ore futures market.
The new licence will enable the DCE to promote its iron ore futures to traders in the Southeast Asian financial hub and facilitate their transactions, the exchange said in a statement on its website.
An RMO licence is issued by the Monetary Authority of Singapore to companies that wish to operate an organised market, or a place to exchange, sell or purchase derivatives contracts or securities.
Foreign investors have been allowed to directly trade iron ore futures in China, the world’s biggest consumer of the steelmaking raw material, since May 2018.
More than 170 overseas clients had opened up accounts to trade Dalian iron ore futures by the end of October, according to the bourse.