CFETS provides trading systems to interbank FX market, money market, bond market and derivatives market and organizes trading. It fulfills market regulatory responsibility, ensuring smooth, sound and efficient market operation.
The Interbank FX Market
The interbank FX market consists of the interbank RMB/FX market, the foreign currency pairs market, the foreign currency lending market, and the related derivatives market. With the membership system and a market making mechanism, it supports FX trading among market participants.
CFETS provides the interbank FX market with a unified and efficient e-trading system that supports anonymous trading, bilateral trading and matched trading, and offers system services such as trade analysis, market making interface, and real-time communication tool.
The Interbank RMB Market
The interbank RMB market consists of money market, bond market, and the related derivatives market, serving as an important platform for financial institutions to manage their liquidity, assets-liabilities, investment and trade, interest rates and credit risks, as well as being a major platform for transmitting the monetary policies of the People’s Bank of China (PBC).
CFETS provides various institutional investors of the interbank RMB market with an efficient and convenient trading system that covers a range of interest rates and credit products, and supports various trading methods such as bilateral trading, market making quotations, request for quotations, and bilateral matching. The system also allows market participants to issue interbank negotiable certificates of deposit and offers them standing lending facility.
Transaction Confirmation Service
CFETS provides a confirmation service for the transactions concluded by market participants through the Post-Trade Processing Platform (PTPP), covering products such as interest rate swap (IRS), FX spot, forward, swap and option bilateral trading, and gold spot, forward and swap bilateral trading.
The service offers unified confirmation text and an electronic confirmation mode to help market participants effectively reduce labor costs and operational risks, thus to improve the efficiency of market operation.
Transaction Unwinding Service
The transaction unwinding service provides bilateral and multilateral trade compression for participants of the IRS and FX swap market. The service allows market participants to terminate their outstanding IRS contracts to the greatest possible extent without changing their exposure to market risks, so as to free their line of credit and occupied capital, effectively reduce the credit risks faced by the market as a whole, and improve the capital utilization efficiency of financial institutions.
Straight-through Processing Service
CFETS provides the Straight-Through Processing (STP) service for the interbank market. The trading system is seamlessly connected with the internal management systems of market participants, and the interbank settlement and clearing systems through Application Programming Interfaces (API). The entire trading process has been totally digitalized to avoid data loss or incorrect data during data landing, thus improving the transaction processing efficiency of market participants and reducing their operational risks.
Based on the quotation data generated by the interbank market trade system as the core, with the support of the post-trade data and other third-party data, CFETS provides information services such as trade reports, benchmark prices, yield curves, indices, and valuations after deep mining.
The CFETS Trade Repository collects and releases the data created at every stage of the interbank spot and derivatives market, and records the data on contract life cycles. It provides multi-layered information services to regulators, market participants, and the general public.
Major Data Products
Market Data refers to the quotes and trade statistics generated by the CFETS trade system, including real-time data, closing data, and historical data.
Benchmark Data refers to the comprehensive market benchmark system developed by CFETS, including benchmark indicators related to exchange rates and interest rates, and various benchmark data such as curves, indices and valuations.
Statistical Data refers to various statistical reports based on calculations such as contract duration, investor nature and trade instruments provided to regulators, market participants, research institutions, and the general public.
Third-party Data refers to comprehensive and deeply processed data products produced by CFETS with third-party data sources such as monetary brokerage companies.
The official website (www.chinamoney.com.cn) hosted by CFETS is designated by PBC to serve as an interbank market information release platform. It is designed to release base data on RMB exchange rates and interest rates, as well as notices and announcements, policies and regulations, market information, market statistics, and information disclosure.
CFETS Market Data Service (CMDS), through which CFETS releases its major data products, is the data interface service CFETS provides for interbank market participants.
CFETS Market Data Report system (CMDR), through which CFETS releases its end of day products, provides files in Excel format to data users who connect through leased line.
CFETS offers interbank market participants and members with real-time, accurate and complete quotation and transaction data through trading terminals, so as to provide reference for market pricing and trading.
Terminals and interfaces for information vendors — CFETS has authorized several eligible information vendors to distribute various data of the interbank market to market participants, domestic and foreign investors, and the general public via terminals and interfaces.
Media and website partners —CFETS releases interbank market data on print media and certain websites with the cooperation on the layout and excerpt authorization.
and guided by the regulators, CFETS commits itself
to building a pricing center for RMB and related products, as well as
calculating and releasing FX and interest rate benchmarks, such as RMB central
parity rate, Shanghai Interbank Offered Rate (Shibor), Loan Prime Rate (LPR),
CFETS RMB Index, RMB reference rate, fixing repo rate.
CFETS has built 82 systems, offering various services such as trading, post-trade processing, information, value-added and regulation services, so as to ensure technical support for market participants.
Network Access Service
CFETS allows clients to access its network via dedicated lines and 3/4G virtual private dial-up network (VPDN). To enable easier access across China, CFETS has set up network relay stations in Guangzhou, Shenzhen, Shantou, Xiamen, Chongqing, Chengdu, Qingdao, Jinan, Tianjin, Dalian, and Hong Kong. Domestic clients can directly access the CFETS network in Shanghai or Beijing via dedicated lines or through nearby relay stations. The relay station in Hong Kong supports access via SDH and MSTP dedicated lines of local mainstream telecom operators such as PCCW, HGC and WT&T. Offshore customers can directly access CFETS Shanghai headquarter, Beijing back-up center or Hong Kong relay station via international dedicated data lines, or through the BT Radianz network and the TNS MPLS network both with global coverage. Given sufficient bandwidth, offshore customers can also access to the CFETS network via the dedicated lines used by their branches in China.
CFETS has set up a complete information security service system. On the principle of “defense in depth”, CFETS has established multi-layered security and protection solutions that cover various areas such as network access, core network, system service, and operation terminal. Furthermore, CFETS continues to develop the Security Situation Awareness System to strengthen security analysis and information auditing. The system has been authenticated by the ISO27001 information security management system. Through cooperation with the China Financial Certificate Authority (CFCA), CFETS provides market members with legal and authoritative digital certificates of various kinds, including those adopting high-performance algorithms such as SM series algorithms developed by the China Office of State Commercial Cryptography Administration (OSCCA) and RSA 2048 encryption.
The CFETS Help Desk is ready to solve any operational and technical problems client facing while using CFETS systems. It also provides 24-hour (Monday to Friday) hotline support and WeChat customer service, as well as on-site service if necessary.