StanChart, HSBC approved for Shanghai Gold Exchange

SHANGHAI, Feb 19 (Reuters) - Standard Chartered (STAN.L: Quote, Profile, Research, Stock Buzz) and HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz)(0005.HK: Quote, Profile, Research, Stock Buzz) have received approval from China's central bank for membership in the Shanghai Gold Exchange <SGE/MENU>, a senior exchange official said on Tuesday.

"This morning, we received the approvals from the central bank, our regulator," said Shen Xiangrong, chairman of China's largest precious metals bourse

Shen said the exchange would kick off a market-making system, which aims to draw big players, in March or April, to boost its gold trading volume.

A market maker quotes both buying and selling prices for a financial instrument or commodity, hoping to make a profit on the bid/offer spread. Most exchanges operate on a matched-bargain or order-driven basis. (Reporting by Alfred Cang; Writing by Rujun Shen; Editing by Edmund Klamann)