How to apply
Offshore Participants Types
I. Offshore RMB Clearing Banks
Offshore RMB clearing banks designated by PBC are allowed to provide RMB purchases and sales services to offshore RMB participating banks for the purpose of goods trade, service trade and direct investment. The RMB position incurred can be squared in the China interbank FX market under Chinese laws and regulations.
II.Foreign Central Banks and Similar Institutions
Based on the Notice of the PBC on Access of Foreign Central Banks and Similar Institutions to the Interbank Foreign Exchange Market (PBC Announcement  No.31), foreign central banks (monetary authorities), international financial institutions, and sovereign wealth funds may enter the China interbank FX market under Chinese laws and regulations.
III. Offshore Participating Banks
According to the Announcement No.40  of PBC and State Administration of Foreign Exchange, offshore participating banks of RMB purchases and sales business with international reputation, regional representativeness and large-scale RMB purchases and sales business may enter the China interbank FX market under Chinese laws and regulations.
Only foreign central banks and similar institutions shall send to CFETS the original copy of the Chinese Inter-Bank FX Market Registration Form for Foreign Central Banks and Similar Institutions.
Offshore RMB clearing Banks, offshore participating Banks, and foreign central banks and similar institutions shall apply to CFETS for members of China interbank FX market.
For foreign central banks and similar institutions, even if they entrust PBC or interbank FX market member(s) as agents, they also shall apply for members of China interbank FX market as well.
After the institutions complete the related preparation (signing the membership agreement, network connection and dealer training, etc.), CFETS will send a formal notice that officially approves the membership. A public announcement will also be released on the official website of CFETS.
1. Set up credit relationship. The institutions shall establish bilateral credit relationship with their China interbank FX market counterparties.
2. Sign derivatives agreement. If the institutions trade RMB-FX derivatives (forward, swap, CCS, and option), they shall sign NAFMII or ISDA derivatives master agreement with their counterparties.
3. Connect to trading system. When directly participating in the interbank FX market, the Institutions shall connect to CFETS trading system through either a leased line or MPLS VPN.
Contact Information of FX Market Department: 4009787878-1-2
Materials mailing address: FX Market Department, 15 Zhongshan Road(E.1), Shanghai
Zip Code: 200002
For Offshore Participating Banks
1. An application report. Its content includes, but is not limited to:
(1) Basic information of the institution;
(2) A summary of the institution’s RMB purchases and sales business, including business scale and scope, product type, client information etc.
(3) Promise to strictly abide by related rules of RMB purchases and sales business, including:
(a) Business scope;
(b) Product type;
(c) Corporate clients conducting RMB purchases and sales business with Overseas Participating Banks shall complete related payments in the same bank;
(d) Pay close attention to abnormal transactions;
(e) Monitor the capital flow of block trades and report related information to PBC through CFETS system in a timely manner.
(4) Guarantee the authenticity of RMB purchases and sales business and report related information through CFETS system in accordance with related requirements.
2. Copies of the institution’s registration documents and corresponding Chinese version.
3. Internal operation procedure for trading in China Interbank FX Market.
4. The policies of risk management and RMB purchases and sales business information reporting related to trading in China Interbank FX Market.
5. CFETS RMB/FX Membership Application Form
6. CFETS Network Connection Application Form
7. CFETS FX Trading System Digital Certificate Application Form
8. Copies of the Certificate of FX Trader issued by CFETS (each institution shall have at least two certified FX traders)
9. Name, resume and contact information of related managing staff and principal trading staff.
10. Other documents required by CFETS.
All aforementioned application documents and completed forms shall be stamped with official seal or signed by authorized signatory (attached with signature authorization).
Foreign Central Banks
Other Foreign Institutions
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|Participants|| Offshore RMB
|Offshore Participating Banks||Foreign Central Banks
and Similar Institutions
|Channel||Directly participating in China interbank FX Market as foreign members|| The institutions may access China Interbank FX Market through one or more of the following three channels:
1. Entrust PBC as agent;
2. Directly participate in China Interbank FX Market as foreign members;
3. Entrust interbank FX market member(s) as agent(s).
|Trading Products||All listed products, including spot, forward, swap, CCS and option.|
|All currency pairs listed for trading in China interbank FX Market.|
|Trading Model||Bilateral and anonymous.|
|Network Connection||Connect to the trading system directly via leased line or MPLS VPN.||Connect to the trading system directly via leased line or MPLS VPN under directly participating model|
|Trading background||RMB purchases and sales business|
|Derivatives Master Agreement||ISDA or NAFMII|
|Information Reporting to CFETS||Offshore Participating Banks conducting RMB-FX transactions through CFETS trading system shall report related details of RMB purchases and sales through the information reporting panel in CFETS Post-trade Processing Platform at the end of each trading day.|
|Participants||Policies Applicable||Supervisor of
|Three Types of
|Notice of the People’s Bank of China on Issues Concerning the Pilot Program on Investment in the Interbank Bond Market with RMB Funds by Three Types of Institution Including Overseas RMB Clearing Banks PBC Document No. 217 ||PBC||PBC|
|RQFII||Notice of the People’s Bank of China on the Implementation of Measures for the Pilot Program of Securities Investment in China by RQFIIs||PBC||PBC|
|Operational Guide of Networking and Account Opening Process for Related Foreign Institutional Investors in the Inter-bank Market||CCDC,CFETS,SHCH||CCDC,CFETS,SHCH|