This article introduces the process of the creation of Chinas Foreign Exchange Trading Center (CFETS), as well as its relationship with the National Interbank Offered Rate Center; it also details the background, business scale cashback forex calculator Online main business of the Foreign Exchange Trading Center China Foreign Exchange Trading Center and National Interbank Offered Rate Center (CFETS, hereinafter referred to as " Exchange Center") was established on April 18, 1994, is the Peoples Bank of China head office directly under the institutions trading center is one of the important financial infrastructure of Chinas financial cashbackforexpipcalculator, mainly responsible for the interbank cashbackforexcalculatorOnline cashbackforexprofitcalculator market, cashback forex market, bond market and other spot and derivatives market to provide trading systems and organize transactions, while performing market monitoring functions, to a certain extent Somewhat similar to the stock market in the SSE and SZSE this article will be from the development of the history, existing business, trading system and process, etc. to sort out the development of each point of the trading center 1, foreign exchange center foreign exchange center was first established back to December 25, 1993, when the State Council issued a "notice on further reform of the foreign exchange management system" (State Development [1993] No. 89), proposed from From January 1, 1994, Chinas foreign exchange management system underwent a major reform: the exchange rate was integrated and a single, managed floating exchange rate system based on market supply and demand was implemented, and the RMB exchange rate was announced by the Peoples Bank of China according to the weighted average price of the foreign exchange transfer market on the previous business day, but at that time the foreign exchange transfer markets around the world were divided from each other, and the difference between the official price of the RMB and the exchange rate of the transfer market was great, and it was urgent to Design a foreign exchange market model that can ensure the smooth progress of the foreign exchange management system reform February 15, 1994, the Peoples Bank of China issued a letter (Yinfa [1994] No. 44) to notify the establishment of the China Foreign Exchange Trade Center, Xiao Gang for the head of the trading center after a series of preparations, April 4 of the same year, the China Foreign Exchange Trade Center system officially online, marking the national unified, standardized inter-bank foreign exchange market officially 2, the national interbank lending center in the national nature of the interbank lending center was established before the head office of the bank did not implement a unified position management, each province has its own funds transfer center, the fragmented market is prone to liquidity accidents, for example, to illustrate the example of Bank A, the head office of Bank A has a 100 million interbank lending quota, but because each province has its own funds transfer center, so the Beijing branch lending However, since each province has its own fund transfer center, Beijing branch borrowed 50 million, Shanghai branch borrowed 80 million, and Shenzhen branch borrowed 30 million in the market at that time, and the borrowing amount far exceeded the amount of the head office, and the amount could not be dispatched uniformly, which easily led to liquidity accidents. On December 4, 1995, the "National Interbank Lending Market Preparatory Meeting" was held in Shanghai, specifying that from January 1, 1996, all interbank lending and borrowing business of financial institutions must be handled through the national unified interbank lending and borrowing market network. China Foreign Exchange Trade Center and National Interbank Offered and Lending Center (one set of institution, two plates) On January 27, 1997, the Peoples Bank of China issued the Notice on the Management of the Business of China Foreign Exchange Trade Center and Related Issues (Yinfa [1997] No. 37), specifying that China Foreign Exchange Trade Center and National Interbank Offered and Lending Center are one set of institution and two plates, as After the Peoples Bank of China directly under the Beijing Bureau-level institutions, CFETS business varieties continue to increase:- ; In June 1997, the interbank bond trading business was started; - nbsp; In June 2002 to start foreign currency borrowing intermediary business;- nbsp; In June 2003 opened the "China Bills" network, launched the China Bills offer system;- interbank foreign currency trading business on line in May 2005;- nbsp; June 2005 opened interbank bond forward trading;- nbsp; August 2005 Launch of RMB/Foreign Currency Forward Transactions;- nbsp; April 2006 launched the RMB foreign currency swap transactions to this point, CFETS formed for the interbank foreign exchange market, RMB borrowing and lending market, bond market, bill market and derivatives market to provide trading, information and supervision services infrastructure II Foreign exchange trading center (CFETS) the main background of foreign exchange trading center for directly under the core government departments do not have independent legal personality and financial and personnel management authority of the Peoples Bank of China directly under the institutions thus seen, CFETS and other inter-bank infrastructure (to the China Debt Exchange and the Shanghai Clearance Institute, for example) the biggest difference is: CFETS is directly under the institutions, does not have independent legal personality We can derive from the financial power of CFETS, especially the power of personnel management can be derived from its real competent body from the exchange of the past and current head, are appointed by the Peoples Bank of China, and most of the final transfer to the Peoples Bank of China system in addition, by going further back can be found that most of the head of the exchange from the Peoples Bank of China system, for example, Xiao Gang, Lin Yuli before respectively in the This shows that the Peoples Bank of China holds the right to appoint and dismiss the personnel of the trading center, the actual authority of the trading center three CFETS main business 1, trading center business scale overview: CFETS business by the foreign exchange market and the local currency market in the establishment of the main business of the trading center to foreign currency market due to the Asian financial crisis The impact of the financial crisis, the interbank foreign exchange market in 1998 and 1999, the volume of transactions fell until 2000, the interbank foreign exchange market began to resume growth while the interbank lending market and bond market in the same period is developing very rapidly According to statistics, the interbank lending market in 1996, the volume of lending transactions for 587.158 billion yuan, to 2003 lending market transactions reached 2,411.3 billion yuan, an increase of more than 99% of the previous year From January to October 2017, the volume of the lending market was as high as 63 trillion yuan In terms of the bond market, according to the data of the Exchange, the cumulative trading volume of the bond market in the first seven months of 2017 was 55.5 trillion yuan At present, the local currency market business of the Exchange occupies an absolutely dominant position In July 2017, the annual cumulative trading volume of the local currency market was 436.2 trillion yuan, about 6 times that of the foreign currency market 2. Main business of the Exchange: in terms of trading varieties, the Exchange provides 7 and 11 types of trading varieties for the foreign exchange market and local currency market respectively, the main contents of which are shown in the following table: foreign currency market (7 types) foreign exchange spot: delivery within 2 trading days after the transaction in the agreed foreign exchange currency, amount and exchange rate foreign exchange forward: delivery within 2 trading days after the transaction in the agreed foreign exchange currency The foreign exchange swap: one before and one after two different delivery days, the direction of the opposite of the two foreign currency exchange foreign exchange currency swap: the agreed period to exchange the agreed amount of RMB and foreign currency principal, while the regular exchange of two currency interest transactions foreign exchange options: a future trading day to agree on the exchange rate to buy and sell a certain number of foreign exchange assets the right to foreign currency pairs: does not involve RMB foreign currency pair foreign currency transactions foreign currency borrowing: short-term foreign currency funds financing behavior of the local currency market (11 types) interbank lending pledged repo buy-back repo spot buying and selling bonds borrowing bonds forward transactions forward interest rate agreement RMB interest rate swap interbank certificates of deposit loan assignment credit risk mitigation certificates and other financial function institutions such as the stock exchange, Shanghai Clearing House, etc. Compared to the nature of Chinas foreign exchange trading center It is a public institution, not a private entity, without independent financial and personnel management rights, directly under the Peoples Bank of China
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