RMB/FX Forward/Swap - Derivative Market

Trading Specifications

Quotes Stats

Definition

RMB/FX swap involves the actual exchange of two currencies (RMB against FX) on a specific date at a rate agreed in the contract (the short leg), and a reverse exchange of the same two currencies at a date further in the future at another rate (generally different from the rate applied to the short leg) agreed in the contract (the long leg).

Specification

The objective currency, amount, tenor, exchange rate, price(swap point) and settlement arrangement are to be negotiated by the two parties.

Trading Mechanism

Bilateral and Matching (C-Swap).

Instruments

USD/CNY, EUR/CNY, JPY/CNY, HKD/CNY, GBP/CNY, AUD/CNY, NZD/CNY, SGD/CNY, CHF/CNY, CAD/CNY, CNY/MOP, CNY/MYR, CNY/RUB, CNY/ZAR, CNY/KRW, CNY/AED, CNY/SAR, CNY/HUF, CNY/PLN, CNY/DKK, CNY/SEK, CNY/NOK, CNY/TRY, CNY/MXN, CNY/THB, CNY/IDR(Regional Trading).

Trading Hours

Beijing time: 9:30 a.m. - 3:00 a.m. next day, trading hours for CNY/IDR are 9:30am-4:30 pm, excluding Chinese statutory holidays.

Method of Clearing & Settlement

Centralized clearing or bilateral clearing.

Product Applications

For managing exchange rate risks and locking in financial costs.

Definition

RMB/FX forward trading is a binding obligation between the trading parties in the national interbank FX market to buy or sell a certain amount of foreign currency at a contracted rate of exchange on a certain date in the future (at least two business days from the trading date).

Specification

Items, such as currencies, amount, maturity, exchange rate, margin and settlement arrangement etc., are to be negotiated by the two parties.

Trading Mechanism

Bilateral and Matching (C-Forward).