Interbank G10 Market members:

To satisfy market’s demand and facilitate the development of interbank G10 market, China Foreign Exchange Trade System(CFETS) will further improve the trading mechanism and related functions of G10 transactions on CFETS FX 2017 on August 6, 2018, which consists of launching G10 Bilateral ESP, increasing decimal points of G10 spot trading and introducing another two currency pairs. Hereby announces arrangements as follows:

1.  Launching Bilateral ESP

a.  Trading instruments: Bilateral ESP supports spot transactions of all G10 currency pairs. The tenor of USD/CAD spot transaction is T+1, while others are T+2.

b.  Trading mechanism: G10 market makers can categorize counterparties with established bilateral credit lines into separate groups and send quotes to groups. The quote will be the obtainable price along with corresponding trading amount and can be sent separately to various groups. Counterparties shall make deals with market makers either by clicking their quotes or submitting an order. The trading rule is based on the principle of “price-amount-time priority”. After this new function is launched, G10 spot transaction under bilateral trading mode will support two functions: Request for Quote(RFQ) and Executive Streaming Price (ESP).

c.  Trading amount. The minimum trading amount is 10,000 USD. Single transaction volume should be integer multiples of 10,000 USD.

2.  ImprovingTrading Precision

a.  The trading decimal point of USD/JPY and EUR/JPY Spot transaction will be increased from 2 to 3.

b.  The trading decimal point of other currency pairs spot transactions (EUR/USD, GBP/USD,USD/CAD, USD/CHF,AUD/USD,USD/HKD, USD/SGD）will be increased from 4 to 5.

3.  Introducing two new Currency Pairs

a.  Spot, Forward and Swap transactions of NZD/USD and EUR/GBP will be newly introduced. Bilateral Trading mode (including RFQ and ESP) will be available. The numbers of G10 market currency pairs increase to 11.

b.  For two currency pairs mentioned above, the trading decimal points of spot are 5 and that of Forward and Swap point is 2.

4.  Other Issues

a.  G10 market makers and members shall refer to the enclosed System Configuration Guidelines of G10 transactions(See Attachment) and finish related system configuration procedures.

b.  The related CSTP service is open for application. The services will be ready to use after the approval.

c.  Fee schedule, credit management and settlement method are all subject to existing G10 transaction arrangements.

d.  Contact Information:

Business inquiry: 86-21-23165107, 86-21-23165001

Market Access inquiry and CSTP application: 86-21-23165005

Business support: 4009787878-1-1

Technical support：4009787878-6-1

Attachment: System Configuration Guidelines of G10 transactions

China Foreign Exchange Trade System

Aug 3, 2018