off-the-wire

China's money brokers prepare to suspend data feed business at regulators' request - sources

Kitco Media
By Reuters
Published:
Updated:
Reuters
SHANGHAI, March 14 (Reuters) - Chinese money brokers are preparing to suspend their data feed businesses in coming days after being told by Chinese regulators on Tuesday that they needed to do so, six sources told Reuters.


The brokers, which include the local joint ventures of Tullett Prebon and NEX International Ltd, currently feed price quotes to data vendors such as Wind Information Co and Sumscope Information Technology Co. and the move could potentially slow trading in the country’s money and bond markets.


The brokerages were told by regulators to suspend the data feed business due to data security concerns, five of the sources said. The sixth source said regulators told the money brokers they were not licensed to conduct data feed business. Reuters was able to establish that five of China's six money brokers, which also include the joint ventures of BGC Partners, Central Tanshi and Compagnie Financière Tradition, had received the notice from regulators.


The brokers did not immediately respond to requests for comment. The China Banking and Insurance Regulatory Commission, which regulates the money brokers, did not immediately reply to a request for comment. (Reporting by Shanghai Newsroom; Editing by Kirsten Donovan)

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