Definition
G10 currency pair transaction is a foreign exchange business among foreign currencies provided by CFETS.
Trading Mechanism
Anonymous, bilateral and matching trading
Instruments
Spot, forward, and swap transactions for 13 currency pairs of AUD/USD, EUR/JPY, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/HKD, USD/JPY, USD/SGD, NZD/USD, EUR/GBP, USD/MOP and HKD/MOP.
Cross Currency swap transactions for 5 currency pairs of AUD/USD, EUR/USD, GBP/USD, USD/HKD, and USD/JPY.
Option transactions for 5 currency pairs of AUD/USD, EUR/USD, GBP/USD, USD/HKD, and USD/JPY, including European and American vanilla, Asian options, European barrier options and European digital options.
NDF transactions for 8 currency pairs of USD/KRW, USD/INR, USD/BRL, USD/IDR, EUR/KRW, EUR/INR, EUR/BRL, and EUR/IDR.
Trading Hours
Beijing time: 7:00 a.m.-3:00 a.m. next day, excluding Chinese statutory holidays.
Method of Clearing & Settlement
Centralized clearing for anonymous trades, bilateral clearing for bilateral and matching trades.
Access Qualifications
Banks, non-bank financial institutions, non-financial enterprises or their authorized branches having self-operating or valet FX transaction business qualification, can all make application of being an Interbank foreign currency pair member.
G10 currency pairs Market is where market participants carry out transactions of G10 foreign currency pairs via CFETS. The traded currency pairs consist of AUD/USD, EUR/JPY, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/HKD, USD/JPY, USD/SGD, NZD/USD, EUR/GBP, USD/MOP, HKD/MOP, USD/KRW, USD/INR, USD/BRL, USD/IDR, EUR/KRW, EUR/INR, EUR/BRL, and EUR/IDR; trading instruments include spot, forward(NDF), swap, and cross currency swap. Trading hours for G10 currency pairs trading is Beijing time: 7:00 a.m.-3:00 a.m. next day, (Statutory holidays excluded).
Qualified banks, non-bank financial enterprises or their authorized affiliates, with FX proprietary and agent trading business, can apply to be a member of interbank G10 Foreign Currency Market.
A unified and highly efficient trading platform
G10 currency pairs trading is implemented in the unified trading system (CFETS FX2017) together with RMB/FX trading. By a single log-on, traders can watch quotes for all currency pairs without setting up other applications.
Flexible and high-efficiency trading models
CFETS FX 2017 support Anonymous and Bilateral trading models on G10 transactions. Under anonymous trading model, all counterparties trade anonymously. Centralized credit line mechanism eliminates risk premium and all market members can get the best quotes from liquidity provider. Under bilateral trading model, CFETS FX2017 supports RFQ and ESP functions, which builds on bilateral credit line of two counterparties. Using ESP function, market members can make a deal by a click on LP’s quotes directly or submitting an order. Using RFQ function, market members can make a deal by sending request to LP to ask for quotes on specific trading amounts and waiting for LP to respond with a quote.
Multi-currency, all-time and sufficient liquidity
Over 30 domestic and foreign liquidity providers provide liquidity. Liquidity providers' capacity of continuous quoting in the global multi-time-zone markets and their respective competitive edge in different currencies ensure that there is sufficient liquidity for all currency pairs at any trading time (e.g. JPY quotes from Bank of Tokyo-Mitsubishi UFJ, AUD quotes from ANZ Bank). Members don' t need to worry about the liquidity problem of block trade.
The trading system automatically screens the quotes from over 30 LPs and selects the best bid and asks and publishes them to the market, which ensures that the selected quotes are more competitive.
Convenient and economical clearing arrangement
CFETS provides centralized settlement under anonymous trading model and bilateral clearing under bilateral trading model.
