Definition
G10 currency pair transaction is a foreign exchange business among foreign currencies provided by CFETS.
Trading Mechanism
Anonymous, bilateral and matching trading
Instruments
Spot transactions for 13 currency pairs of AUD/USD, EUR/JPY, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/HKD, USD/JPY, USD/SGD, NZD/USD, EUR/GBP, USD/MOP and HKD/MOP.
Trading Hours
Beijing time: 7:00 a.m.-3:00 a.m. next day, excluding Chinese statutory holidays.
Method of Clearing & Settlement
Centralized clearing for anonymous trades, bilateral clearing for bilateral and matching trades.
Access Qualifications
Banks, non-bank financial institutions, non-financial enterprises or their authorized branches having self-operating or valet FX transaction business qualification, can all make application of being an Interbank foreign currency pair member.
G10 currency pairs Market is where market participants carry outtransactions of G10 foreign currency pairs via CFETS. The traded currency pairs consist of AUD/USD, EUR/JPY, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/HKD, USD/JPY, USD/SGD, NZD/USD and EUR/GBP; trading instruments include spot, forward, swap, cross currency swap, and interest rate swap. Trading hours for G10 currency pairs trading is 7:00am to 23:30pm (Statutory holidays excluded).
Qualified banks, non-bank financial enterprises or their authorized affiliates, with FX proprietary and agent trading business, can apply to be a member of interbank G10 Foreign Currency Market.
A unified and highly efficient trading platform
G10 currency pairs trading is implemented in the unified trading system (CFETS FX2007) together with RMB/FX trading. By a single log-on, traders can watch quotes for all currency pairs without setting up other applications.
Flexible and high-efficiency trading models CFETS FX 2017 support Anonymous and Bilateral trading models onG10 transactions. Under anonymous trading model, all counterparties tradeanonymously. Centralized credit line mechanism eliminates risk premium and all market members can get thebest quotes from liquidity provider.Under bilateral trading model, CFETSFX2017 supports RFQ and ESP functions, which builds on bilateral credit line oftwo counterparties. Using ESP function, market members can make a deal by aclick on LP’s quotes directly or submitting an order. Using RFQ function, marketmembers can make a deal by sending request to LP to ask for quotes on specific tradingamounts and waiting for LP to respond with a quote.
Multi-currency, all-time and sufficient liquidity
17 domestic and foreign liquidity providers provide liquidity. Liquidity providers' capacity of continuous quoting in the global multi-time-zone markets and their respective competitive edge in different currencies ensure that there is sufficient liquidity for all currency pairs at any trading time (e.g. JPY quotes from Bank of Tokyo-Mitsubishi UFJ, AUD quotes from ANZ Bank). Members don' t need to worry about the liquidity problem of block trade.
The trading system automatically screens the quotes from 17 LPs and selects the best bid and asks and publishes them to the market, which ensures that the selected quotes are more competitive.
Convenient and economical clearing arrangement
CFETS provides centralizedsettlement under anonymous trading model and bilateral clearingunder bilateral trading model.
