CHINA'S State Administration of Foreign Exchange yesterday issued new guidelines on foreign exchange market makers and classified them into three types in a move to boost development of the country's foreign exchange market.

They are divided into spot trading market makers, forwards and swap trading market makers and comprehensive market makers, according to the new guidelines that will take effect tomorrow.

The foreign exchange regulator said 26 banks have been approved as spot market makers, including China Merchants Bank and China Minsheng Banking Corp.

Also, 18 banks were approved by the regulator to become forwards and swap trading market makers, including the Bank of China, the Agricultural Bank of China and the Industrial and Commercial Bank of China.

A market maker in the inter-bank foreign exchange market is a member who undertakes the obligation of selling and buying prices of currencies to other members on a continuing basis. China introduced the market maker system in January 2006.