The interbank FX market members and Gold bilateral market members:

Under the leadership of the People’s Bank of China and the State Administration of Foreign Exchange, with great cooperation and support from all the market members, the Shanghai Gold Exchange as well as the Shanghai Clearing House, the China Foreign Exchange Systems (CFETS) has accomplished the construction and relevant preparation work for the New Trading Platform-CFETS FX 2017 (Phase II). CFETS plans to launch the New Trading Platform-CFETS FX 2017 (Phase II) on February 5th, 2018, and hereby announces arrangements as follows:

I. The overall arrangement

1. The New Trading Platform (NTP)-CFETS FX 2017 (Phase II) supports FX spot transactions (Anonymous & Bilateral), FX forwards, FX swap, Cross currency swap as well as Gold RFQ business. In the meantime, the existing FX trading platform CFETS FX 2009 will be out of service. The user accounts, credit relations, clearing information as well as the historical data will be transferred to the CFETS FX 2017 automatically.

2. The C-Trade system supporting C-Swap & C-Forward will continue to function and be integrated to the united terminal of NTP, supporting single sign-on.

3. Part of the previously launched FX Spot ODM, FX Option and Foreign Currency Lending on CFETS FX 2017 will be further optimized and upgraded.

II. Updates for Main Trading functions

1. For QDM trading mode, the Bilateral ESP with one-click function has been launched for USD/CNY spot (T+2) only. Liquidity providers can give executable/laddered quotes while liquidity consumers can make transactions by one-click function or submitting orders. The Multiple RFQ function will be cancelled.

2.For Anonymous trading mode, order will aggress on quote on a Price-Volume-Time basis, namely“Price preference, volume preference and time preference”; Good for Amount from market makers is canceled; included a condition for making quotes visible, which is “the remaining credit limit shall exceed 1million of base currency”.

3. FX CCS improvements: The AUD/CNY CCS has been added; The G7 CCS will be launched, available for EUR/USD, GBP/USD, USD/HKD, USD/JPY and USD/AUD CCS.

Other new CCS functions include: new swap models and amortization for notional principal, back value date, customized interest rate calculation period, separated value date and payment date, LPR as CNY reference rate and flexible stub settings, etc.

4. Improvement for FX Option Market Display: The Bubble diagram is launched for FX option deals, helping traders locate the hotspot in market.

5. FX Forward full price quotation is applied instead of forward point quotation. For NDF, auto-calculation function is applied to the cash flow netting.

6. Instant messenger tool CFETS Communicator based on identity verification will be launched.

7. Functions such as Credit Management, Liquid Provider Management etc. will be added. Different methods of setting counterparty credit will be provided.

8. Further optimizations to the system functions, trading performance and user experience will be achieved.

III. Preparation work as CFETS members

CFETS will upgrade the system on Jan 27^th, Jan 28^th, Feb 3^rd and in the morning of Feb 4^th. CFETS market makers and members should complete the following preparations on time.

1. Please complete the terminal configuration, private broadband network upgrade, and firewall unblocking.

2. Please install and configure the CFETS FX 2017 terminal program. The program will be auto-upgraded for users who have installed and traded in FX Options, Foreign Currency Lending and FX Spot matching of the CFETS FX 2017.

3. Please complete the permission configuration and connectivity inspection of LP API between Jan 29^th to Feb 2^nd. Please complete the inspection and settings of user permissions, bilateral credit management, back-office management and trading panels.

4. The CFETS FX 2017 terminal program will be auto-upgraded to the official release after Feb 4^th. Please complete the interface configuration and connectivity inspection of CSTP, CMDS, C-Trade and Post-Trade system on Feb 4^th. CCS members and FX Forward members (NDF users) should complete related permission configuration. FX Option members should complete the Trading Floors settings.

Please find the details as attached.

IV. Service Support

1. Hotline

If there is any question, please contact:

Trading Support：4009787878-1-1

Technical Support：4009787878-6-1

2. Office Hour

Work days: 6:30-24:00;

On February 4^th (Sunday): 9:00-21:00.

Attachment: CFETS FX 2017 Upgrade Configuration Guide