Many global banks have refused to sign new trading deals with China's four biggest state-owned banks, which control the country's derivatives market. The moves effectively lock out foreign banks from China's rapidly growing market and have caused their derivatives-trading shares to plunge. Chinese banks asked for contractual guarantees from locally incorporated foreign banks' global headquarters. "They've asked for guarantees that are very difficult to give," said Keith Noyes of the International Swaps and Derivatives Association. "You have a stalemate now."
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