How to apply | Documents Presented

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 [2015] 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 [2015] 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.

Market Access

Registration:

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.

Membership application:

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.

Public Announcement:

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.

Pre-trade preparation:

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

Fax: 021-58957363

Materials mailing address:  FX Market Department, 15 Zhongshan Road(E.1), Shanghai

Zip Code: 200002

Documents Presented 

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).

How to apply | Documents Presented

How to apply 

I. For Foreign Central Banks, International Financial Organizations, Sovereign Wealth Fund 
1.The overseas institutions that entrust People’s Bank of China (hereinafter referred to as PBC) to conduct transactions and settlements, hall apply for trading system net connection according to PBC’s relevant requirements; 
2.The overseas institutions that entrust interbank market settlement agentsfor transactions and settlements, shall apply to National Interbank Funding Centre (hereinafter referred to as NIFC) in written form for trading system net accessing via their settlement agents, and fill out “Business Application Form for Relevant Overseas Institutional investors” and mail to China Foreign Exchange Trade System & National Interbank Funding Center (hereinafter referred to as CFETS). CFETS shall process and handle related formalities upon receipt of application forms and complete the connection formalities within three working days; If there is any change to the content of the materials, settlement agents shall apply to CFETS for revisions within ten working days. 
II. For Overseas investors including overseas RMB business clearing banks, overseas participating banks, qualified foreign institutional investors (QFII), RMB qualified foreign institutional investors (RQFII) 
Other than stipulated by PBC, the overseas investors that invest interbank bond market shall entrust settlement agents for transactions and settlement. Overseas investors’ settlement agents shall apply to CFETS for net connection to the trading system within three months after the issuance of the notice of receiving filing materials by the PBC Shanghai Head Office; those who are overdue shall re-file with the PBC Shanghai Head Office. Foreign central banks or monetary authorities (hereinafter referred to as foreign central banks) shall go through the procedures specified by the PBC. 
CFETS will complete the application review process, open an account and notify overseas investors’ settlement agents within three working days after receiving the above application materials. 
For overseas investors who intend to terminate the settlement agency relationship with their settlement agents, they shall submit relevant certified documents to CFETS, and CFETS will terminate the settlement agents’ trading permission of overseas investors’ accounts within one working day after receiving the documents. 
Contact Information of RMB Market Department: 021-68797878-2-2 
Fax: 021-68797606 
Materials mailing address:BIAN Yuzu/ Qin Jian,  RMB Market Department, Building 30, 1387 Zhangdong Road, Shanghai
Zip Code: 201203 

Documents Presented 
Money Market
Bond Market
Derivative Market

Members

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Market Rules

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111111
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Member List

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Updates

PBC
CFETS
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Business Guidance

 Participants  Offshore RMB
Clearing Banks
 
 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.
 
Trading Currencies
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   
Quota No limit
 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.   

Policy Framework

Participants Policies Applicable Supervisor of
Qualification
Supervisor of
Investment Quota
Three Types of
Foreign Institutions
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 [2010] 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
Foreign Central
Banks, International
Financial
Organizations,
Sovereign Wealth
Funds
Operational Guide of Networking and Account Opening Process for Related Foreign Institutional Investors in the Inter-bank Market CCDC,CFETS,SHCH CCDC,CFETS,SHCH
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Trading Rules

Money Market
Bond Market
Derivatives Market
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Regulations

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