Macquarie leads push into Japan - Macquarie Bank becomes the first Australian bank to enter Japan's financial sector

Business Asia, May 31, 1999

Macquarie Bank, Australia's sixth-largest lender, has become the first Australian bank to enter Japan's financial sector, signing an equity derivatives joint venture with the Industrial Bank of Japan (IBJ).

The move is the bank's second venture in six months into an Asian country forced to deregulate its banking sector.

Last December, Macquarie signed an agreement with Korea's Kookmin Bank to develop a treasury derivatives business.

Macquarie and IBJ will combine to trade and issue Japanese equity derivatives products, including listed and over-the-counter (OTC) options, convertibles, equity swaps, warrants and other structured business deals for wholesale and retail clients in Japan, Europe and other markets.

Macquarie, which has already assigned trading, structuring and risk-management executives to work on the Japanese business, will be responsible for providing derivative pricing models and risk-management systems.

Macquarie Bank managing director Mr Allan Moss said the venture was established to take advantage of market openings in Japan.

IBJ Securities (IBJS), a 100 per cent-owned subsidiary of IBJ, recently became the first Japanese securities company to be granted an OTC derivatives license.