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BMO Capital Markets Becomes the First Canadian Bank To Trade Foreign Exchange Options in the Chinese Yuan

NBC-1TV World News

[By NBC-1TV H. J Yook]BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group (NYSE: BMO)(TSX: BMO), this week started trading foreign exchange options in the Chinese Yuan (CNY).

BMO received the license approval from the State Administration of Foreign Exchange (SAFE), making BMO the first Canadian bank to trade FX options in CNY as an interbank market member in China.

“This license allows BMO to solidify our position as a leading bank in China's emerging foreign exchange market,” said Jamie Thorsen, Executive Managing Director & Head of Foreign Exchange and China Capital Markets, BMO Capital Markets.

“BMO is the first Canadian bank to have the license to trade Yuan options in China and one of only two North American banks to have this market access. BMO is also the first Canadian bank to provide cross-border Yuan payment service for its North American client base. As a full-suite participant in China's onshore FX market, BMO is uniquely equipped to provide comprehensive Yuan market information to our global client base to help them with their Yuan exposures and payment requests,” added Ms. Thorsen.

Although the Yuan is not fully convertible, the pace to become an international currency has accelerated significantly. In the first quarter this year, total Yuan international denominated transactions were CNY 360 billion. In comparison, the total last year was CNY 500 billion.

BMO is committed to bolstering its capital markets presence in the Pan Asian market. Last month, BMO opened a foreign exchange office in Hong Kong. In addition, BMO is expanding its financial products and debt products capabilities in Hong Kong. A team of sales and trading specialists have been hired to support the firm's latest growth efforts, doubling the size of the Hong Kong office.

“BMO Capital Markets' foreign exchange presence gives us a clear advantage in growing our existing business and capitalizing on the tremendous growth potential of the Pan Asian market,” said David Mu, Managing Director, BMO Capital Markets in China. “Our strategic priority is to maintain our position as a leading provider of Canadian dollar foreign exchange products globally,” he said.



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