China Foreign Exchange Trade System
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| China Foreign Exchange Trade System | |
| Founded | 1994 |
|---|---|
| Headquarters | Shanghai, Head Office; Beijing, Back-up Center; and 18 sub-centers |
| Key People | Xie Duo, President; Li Yu, Dou Jianzhong, Pei Chuanzhi, Vice Presidents |
| Products | RMB/ foreign currency spot trading, Foreign currency/ foreign currency spot trading, Foreign currency/foreign currency spot trading, RMB interbank lending, RMB bond trading |
| Web site | http://www.chinamoney.com.cn/column/english/index.html |
The China Foreign Exchange Trade System (CFETS) is the interbank trading and foreign exchange division of China's central bank.
The China Foreign Exchange Trading System (CFETS) & National Interbank Funding Center is an institution under direct control of the People's Bank of China[1]. The CFETS' main functions are: interbank foreign exchange trading, RMB interbank lending, bond trading system, and the organization of interbank foreign exchange transactions. The CFETS also provides fund settlement for foreign exchange transactions, delivery & settlement services for RMB interbank lending and bond trading, online bill pricing system, information services for foreign exchange, bond and money markets, and the development of other businesses under approval of the People's Bank of China.
Contents |
History
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Approved by the authorities, foreign currency trading was be formally introduced to the interbank foreign exchange market in China on May 18, 2005.
The CFETS said in May of 2008 that it would launch trading centers or the exchange rate swaps, currency swaps and forward, and so on, the focus is the development of both the cash and derivatives products.[2]
On Apr, 16, 2008 Citi China was voted the number one trading bank and number one trading bank for derivatives in a 2007 China Foreign Exchange Trade System poll (CFETS). Citi China was also named by members of CFETS as the leading market maker for foreign currency pairs in the poll.[3]
The poll, held for the first time by CFETS, is aimed at promoting exchange between member organizations by recognizing good practice, so as to advance the healthy development of the market. A total of 265 member organizations participated in the poll. In deciding the result, a number of factors were considered, including dealing volume, norm of the trader, and contribution to the development of CFETS, in terms of providing strategic advice.
CFETS plays a significant role in safeguarding RMB exchange rate stability, transmitting central bank monetary policies, serving financial institutions and supervising market operations. The system supports and organizes FX trading, RMB lending and bond trading, and interbank FX trading. It also handles settlement and clearing of FX trading, clearing of RMB lending and bond trading, and provides online commercial paper quotation system and information on the FX, bond and money markets.
At one point, leaders of the CME and the China Foreign Exchange Trading System & National Interbank Funding Center (CFETS) announced that they had signed a Memorandum of Understanding (MOU). Under the MOU, CME and the CFETS agreed to create a forum for a continuous flow of information between the parties and for CME to provide advice, counsel, and expertise in the development of foreign exchange (FX) derivatives instruments for China.[4]
Chronology
April 1994 - The CFETS was established according to the strategic plan of the People's Bank of China and State Administration of Foreign Exchange, implemented "multiple technological means and trading patterns to meet market demands of various levels[5]."
April 4, 1994 - The CFETS introduced a foreign exchange trading system for USD/RMB
April 5, 1994 - HKD/RMB trading started
March 1, 1995 - JPY/RMB trading started
April 1, 2002 - EUR/RMB trading started
May 18, 2005 - Pairs trading for 8 foreign currencies was introduced
August 15, 2005 - RMB/FX forward trading was introduced
April 4, 2006 - Interbank FX swap was introduced
January 3, 1996 - RMB credit lending system started operations through the CFETS
June 1997 - interbank bond trading started
July 2001 - the pilot program for RMB voice broking was introduced
June 1, 2002 - foreign exchange deposit broking services started
June 30, 2003 - the paper quotation system was introduced through www.chinacp.com.cn.
June 15, 2005 - interbank bond forward trading was introduced
Structure
The CFETS is headquartered in Shanghai, with a backup center in Beijing and sub-centers in Guangzhou , Shenzhen, Tianjin, Jinan, Dalian, Nanjing, Xiamen, Qingdao, Wuhan, Chongqing, Chengdu, Zhuhai, Shantou, Fuzhou, Ningbo, Xi'an, Shenyang, and Haikou.
Products and Services
Key People
References
- ↑ Brief Introduction of China Foreign Exchange Trading System. China Foreign Exchange Trading System & National Interbank Funding Center. Retrieved on May 18, 2008.
- ↑ Cicada Signs China Foreign Exchange Trade System. SINA. Retrieved on May 13, 2008.
- ↑ Press Release. Citi. Retrieved on May 13, 2008.
- ↑ Press Release. CME Group. Retrieved on May 13, 2008.
- ↑ Important Events. China Foreign Exchange Trading System & National Interbank Funding Center. Retrieved on May 19, 2008.
