China Foreign Exchange Trade System
|China Foreign Exchange Trade System|
|Key People||Pei ChuanZhi, President|
|Products||RMB/ foreign currency spot trading, Foreign currency/ foreign currency spot trading, Foreign currency/foreign currency spot trading, RMB interbank lending, RMB bond trading|
CFETS, founded on April 18, 1994, is run by the People's Bank of China (PBC). Its core functions include: providing trading, information, benchmark and training facilities to the interbank lending, bond and FX markets, monitoring market transactions, providing services for the operation and transmission of the central bank's monetary policies, and engaging in other businesses authorized by the PBC. 
Approved by the authorities, foreign currency trading was formally introduced to the interbank foreign exchange market in China on May 18, 2005.
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.
In 2008, 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.
In December 2017, CFETS and NEX Group partnered to launch phase one of a new trading platform for the Chinese foreign exchange market. The new platform, called "CFETS FX 2017" featured a central limit order book (CLOB), for anonymous trading on the Chinese FX market. In February 2018, both announced the launch of phase two, a relationship-based platform for Chinese renminbi trading of spot, forwards and swaps, based on NEX Group's EBS trading platform. On day one, 480 firms logged into the system with 307 institutions executing deals, and notional turnover valued at $62.8 billion. The trading platform is significant because it marks the expansion of China's domestic renminbi market.
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."
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
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
April 1, 2002 - EUR/RMB trading started
June 30, 2003 - the paper quotation system was introduced through www.chinacp.com.cn.
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
June 15, 2005 - interbank bond forward trading was introduced
December 2017 - CFETS launches phase one of FX2017, the domestic FX platform
February 2018 - Launch of phase two of FX2017, with spot, forwards and swaps trading
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
Pei ChuanZhi, President
Ying Zhaoxiang, Inspector General
Zhang Yi, Executive Vice President
Xu Zaiyue, Executive Vice President
Sun Jie, Executive Vice President
Wang Hongbo, Executive Vice President