Abu Dhabi forex broker seeks partner in China

ADS Securities, the biggest foreign-exchange broker in the Middle East, is looking for a partner in China so that it can gain access to the new energy-trading platform in the Shanghai Free Trade Zone, as part of its efforts to expand in Asia.

The Abu Dhabi-based broker is in talks with several institutions in China on forming a partnership able to trade in the Shanghai International Energy Trade Centre, an exchange set up late last month that is aiming to launch a new crude-oil contract.

"We are keeping a very close eye on the opportunities in the Shanghai Free Trade Zone … we are in talks with one or two," said Desmond Yeo, managing director of ADS Securities Hong Kong. "We want to be there when these opportunities arise."

Opportunities that could be seen soon in the pilot zone included commodity futures contracts denominated in yuan, and Fortune 100 corporate yuan bonds, he said.

The Shanghai Futures Exchange (SFE) is looking to launch a long-awaited crude-oil futures contract that would be traded in the new centre it has established in the pilot free-trade zone.

No details have been revealed, but officials have said the contract, aimed at creating a benchmark for Asia, might be priced in yuan.