After being informed by Chinese regulators on Tuesday that they needed to do so, Chinese money brokers are prepared to cease their data feed businesses in the coming days, according to six people who spoke to Reuters about the situation.
This move might possibly impede trading in the country’s money and bond markets. The brokers, which include the local joint ventures of Tullett Prebon and NEX International Ltd, already provide price quotations to data vendors such as Wind Information Co and Sumscope Information Technologies Co.
According to five of the individuals, the regulators have instructed the brokerages to halt their participation in the data feed sector owing to worries over the integrity of the data. According to the sixth source, officials notified the money brokers that they did not have licenses to conduct business involving data feeds.
Reuters was able to prove that five of China’s six money brokers had received the notification from authorities. This number also includes the joint ventures of BGC Partners, Central Tanshi, and Compagnie Financière Tradition.
The brokers did not react right away to requests for comments that were made to them. A request for a response was sent to the Chinese Banking and Insurance Regulatory Commission, which is in charge of regulating money brokers. But, the commission did not immediately respond to our inquiry. (Reporting was done by Shanghai Newsroom, while Kirsten Donovan was responsible for editing)
Network Hype Team