Internationalizing China’s Trading Standards

By Jim Northey, Co-Chair Global Technical Committee and Co-Chair High Performance Working Group, FIX Trading Community, and Mao Ting, Senior Manager, China Foreign Exchange Trade System

CFETS is keen to work closely with the FIX organization and ISO TC68 to improve standardization in China’s domestic market and share its experiences with the world.

The China Foreign Exchange Trade System (CFETS), also known as the National Interbank Funding Center, was founded in 1994. CFETS adheres to the principles of “multiple technical approaches, varied trading mechanisms and integrated demands from multi- tiered markets,” and is committed to developing infrastructure and providing innovative products

and mechanisms for the China interbank market. Its strategic goal is to become “a major global trading platform and pricing centre for renminbi (RMB) and related products.”

By applying advanced information technology, leased lines and the Internet, CFETS provides a range of services covering issuance, trading, information
and post-trade activities for the RMB-denominated interest rate, the RMB exchange rate and related products in the cash and derivatives markets. Every business day, it publishes market benchmarks including the RMB central parity rate, the Shanghai interbank offered rate (Shibor), the loan prime rate (LPR), the CFETS RMB index series, the fixing repo rate, bond indices, yield curves, etc. By the end of July 2018, CFETS has over 23,000 market participants. The total trading volume in the first half of 2018 reached Rmb 557.5 trillion ($81.4 trillion)


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