FX MARKET Policy & Guidance - For Overseas Participants

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

Participants

Policies Applicable

Supervisor of Qualification

Supervisor of Investment Quota

Three Types of Foreign Institutions

PBC

RQFII

PBC

Foreign Central Banks, International Financial Organizations,Sovereign Wealth Funds

CCDC,CFETS,SHCH

Money Market

Bond Market

Derivative Market

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.