Merrill Launches Yuan-Denominated Prime Brokerage Services

Nov 22 2010 | 9:34am ET

Bank of America Merrill Lynch's prime brokerage has launched a pair of Chinese yuan services designed to capitalize on growing hedge fund demand in the region.

The firm has begun accepting deposits of yuan and/or yuan-denominated securities. The former will allow hedge funds to create yuan-denominated share classes, while the latter custody accounts will make it easier for hedge funds to buy (and borrow against) yuan-settled instruments.

"Large international hedge funds used to use non-deliverable yuan forward contracts to make such bets," Merrill's Ben Williams told Bloomberg News. "These new services allow them to make the same bets through the potentially cheaper offshore yuan market."

He added, "given investor demand and the increasing focus on China, we're likely to see the development of yuan share classes among both regional and global hedge funds."

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...