Interbank market open to brokers

Money brokers will be allowed into China's domestic interbank market as part of a move intended to shore up local interbank lending and bond markets, the Wall Street Journal reported. The central bank said Tuesday that new guidelines dated July 6 would take effect immediately. They allow money brokers to trade securities on the spot market, trade bond repurchase agreements, bond forwards, yuan interest-rate swaps and services related to bill trading and interbank lending, the newspaper reported. Interdealer brokers are middlemen between market makers and securities firms. China introduced money brokerages last year on a trial basis and in December the first joint venture, Tullet Prebon Sitico (China) Ltd, started operations.