The China Foreign Exchange Trade System (CFETS, zh, 中國外匯交易中心), also known as National Interbank Funding Center (NIFC, zh, 全国银行间同业拆借中心), is a

financial market infrastructure Financial market infrastructure refers to systems and entities involved in Clearing (finance), clearing, Settlement (finance), settlement, and the recording of payments, Security (finance), securities, Derivative (finance), derivatives, and other ...

and

electronic trading platform In finance, an electronic trading platform, also known as an online trading platform, is a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Various financial products ...

China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

, established in 1994 in

Shanghai Shanghai, Shanghainese: , Standard Chinese pronunciation: is a direct-administered municipality and the most populous urban area in China. The city is located on the Chinese shoreline on the southern estuary of the Yangtze River, with the ...

under the

People's Bank of China The People's Bank of China (officially PBC and unofficially PBOC) is the central bank of the People's Republic of China. It is responsible for carrying out monetary policy as determined by the ''PRC People's Bank Law'' and the ''PRC Commercia ...

(PBC). CFETS provides a major trading platform and pricing center for

renminbi The renminbi ( ; currency symbol, symbol: Yen and yuan sign, ¥; ISO 4217, ISO code: CNY; abbreviation: RMB), also known as the Chinese yuan, is the official currency of the China, People's Republic of China. The renminbi is issued by the Peop ...

and

foreign exchange The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. By trading volume, it i ...

-related products. It is the trading platform of the China Interbank Bond Market (though not for the Chinese repo market, which is traded on the

Shanghai Stock Exchange The Shanghai Stock Exchange (, SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock ...

) and participates in China's policy of internationalization of the renminbi. In 2022, it was acknowledged by the

Financial Stability Board The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established in the 2009 G20 Pittsburgh Summit as a successor to the Financial Stability Forum (FSF) ...

as a trade repository for

credit Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...

, foreign-exchange, and interest-rate derivatives.

Overview

CFETS was created by the PBC on , initially as the Forex Trading System ( zh, 外汇交易系统), intended to facilitate liquidity for transactions pairing the

with

Japanese yen The is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar and the euro. It is also widely used as a third reserve currency after the US dollar and the euro. Th ...

British pound Sterling (Currency symbol, symbol: Pound sign, £; ISO 4217, currency code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound is the main unit of account, unit of sterling, and the word ''Pound (cu ...

New Zealand dollar The New Zealand dollar (; currency sign, sign: $; ISO 4217, code: NZD) is the official currency and legal tender of New Zealand, the Cook Islands, Niue, the Ross Dependency, Tokelau, and a British territory, the Pitcairn Islands. Within New Zeal ...

Swiss franc The Swiss franc, or simply the franc, is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) iss ...

Malaysian ringgit The Malaysian ringgit (; plural: ringgit; symbol: RM; currency code: MYR; Malay name: ''Ringgit Malaysia''; formerly the Malaysian dollar) is the currency of Malaysia. Issued by the Central Bank of Malaysia, it is divided into 100 cents ( M ...

South African rand The South African rand, or simply the rand, (currency sign, sign: R; ISO 4217, code: ZAR) is the official currency of South Africa. It is subdivided into 100 Cent (currency), cents (sign: "c"), and a comma separates the rand and cents. The Sou ...

United Arab Emirates dirham The dirham (; , currency sign, abbreviation: د.إ in Arabic script, Arabic, Dh (singular) and Dhs (plural) or DH in Latin alphabet, Latin; ISO 4217, ISO code: AED) is the official currency of the United Arab Emirates. The dirham is subdivided i ...

Hungarian forint The forint (, sign Ft; code HUF) is the currency of Hungary. It was formerly divided into 100 fillér, but fillér coins are no longer in circulation. The introduction of the forint on 1 August 1946 was a crucial step in the post-World War II s ...

Danish krone The krone (; plural: ''kroner''; sign: kr.; code: DKK) is the official currency of Denmark, Greenland, and the Faroe Islands, introduced on 1 January 1875. Both the ISO code "DKK" and currency sign "kr." are in common use; the former precedes ...

Norwegian krone The krone (, currency sign, abbreviation: kr (also NKr for distinction); ISO 4217, code: NOK), plural ''kroner'', is the currency of the Kingdom of Norway (including List of possessions of Norway, overseas territories and dependencies). It was t ...

, and

Mexican peso The Mexican peso (Currency symbol, symbol: $; ISO 4217, currency code: MXN; also abbreviated Mex$ to distinguish it from peso, other peso-denominated currencies; referred to as the peso, Mexican peso, or colloquially varo) is the official curre ...

. In 1996, its scope was expanded to interbank funding, in 1997 to the interbank bond market, and in 2005 to interest-rate and

foreign exchange derivative A foreign exchange derivative is a financial derivative whose payoff depends on the foreign exchange rates of two (or more) currencies. These instruments are commonly used for currency speculation and arbitrage or for hedging foreign exchange ...

s. It is a not-for-profit entity owned by the PBC, officially described as a "sub-institution directly affiliated to the PBC". CFETS also operated a

central counterparty A central clearing counterparty (CCP), also referred to as a central counterparty, is a financial market infrastructure organization that takes on counterparty credit risk between parties to a transaction and provides clearing and settlement serv ...

until 2009, when that role was transferred to the

Shanghai Clearing House The Shanghai Clearing House (SHCH, zh, link=no, 上海清算所), formally the Inter-bank Market Clearing House Co., Ltd. ( zh, link=no, 銀行間市場清算所股份有限公司簡稱上海清算所), is a significant central counterparty and ...

. CFETS has been based since 2006 in

Zhangjiang Town Zhangjiang Town () is a town located in the Pudong District of Shanghai, China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the li ...

, Shanghai, with a local backup center on

the Bund The Bund is a waterfront area and a protected historical district in central Shanghai. The area centers on a section of Zhongshan Road (East Zhongshan Road No.1) within the former Shanghai International Settlement, which runs along the wester ...

and a remote backup center in

Beijing Beijing, Chinese postal romanization, previously romanized as Peking, is the capital city of China. With more than 22 million residents, it is the world's List of national capitals by population, most populous national capital city as well as ...

. It also has sub-centers in

Guangzhou Guangzhou, Chinese postal romanization, previously romanized as Canton or Kwangchow, is the Capital city, capital and largest city of Guangdong Provinces of China, province in South China, southern China. Located on the Pearl River about nor ...

Shenzhen Shenzhen is a prefecture-level city in the province of Guangdong, China. A Special economic zones of China, special economic zone, it is located on the east bank of the Pearl River (China), Pearl River estuary on the central coast of Guangdong ...

Tianjin Tianjin is a direct-administered municipality in North China, northern China on the shore of the Bohai Sea. It is one of the National Central City, nine national central cities, with a total population of 13,866,009 inhabitants at the time of the ...

Jinan Jinan is the capital of the province of Shandong in East China. With a population of 9.2 million, it is one of the largest cities in Shandong in terms of population. The area of present-day Jinan has played an important role in the history of ...

Dalian Dalian ( ) is a major sub-provincial port city in Liaoning province, People's Republic of China, and is Liaoning's second largest city (after the provincial capital Shenyang) and the third-most populous city of Northeast China (after Shenyang ...

Nanjing Nanjing or Nanking is the capital of Jiangsu, a province in East China. The city, which is located in the southwestern corner of the province, has 11 districts, an administrative area of , and a population of 9,423,400. Situated in the Yang ...

Xiamen Xiamen,), also known as Amoy ( ; from the Zhangzhou Hokkien pronunciation, zh, c=, s=, t=, p=, poj=Ē͘-mûi, historically romanized as Amoy, is a sub-provincial city in southeastern Fujian, People's Republic of China, beside the Taiwan Stra ...

Qingdao Qingdao, Mandarin: , (Qingdao Mandarin: t͡ɕʰiŋ˧˩ tɒ˥) is a prefecture-level city in the eastern Shandong Province of China. Located on China's Yellow Sea coast, Qingdao was long an important fortress. In 1897, the city was ceded to G ...

Wuhan Wuhan; is the capital of Hubei, China. With a population of over eleven million, it is the most populous city in Hubei and the List of cities in China by population, eighth-most-populous city in China. It is also one of the nine National cent ...

Chongqing ChongqingPostal Romanization, Previously romanized as Chungking ();. is a direct-administered municipality in Southwestern China. Chongqing is one of the four direct-administered municipalities under the State Council of the People's Republi ...

Chengdu Chengdu; Sichuanese dialects, Sichuanese pronunciation: , Standard Chinese pronunciation: ; Chinese postal romanization, previously Romanization of Chinese, romanized as Chengtu. is the capital city of the Chinese province of Sichuan. With a ...

Zhuhai Zhuhai; Yale romanization of Cantonese, Yale: ''Jyūhói''; Chinese postal romanization, also known as Chuhai is a prefecture-level city located on the west bank of the Pearl River (China), Pearl River estuary on the central coast of southern ...

Shantou Shantou, Chinese postal romanization, alternately romanization of Chinese, romanized as Swatow and sometimes known as Santow, is a prefecture-level city on the eastern coast of Guangdong, China, with a total population of 5,502,031 as of the 20 ...

Fuzhou Fuzhou is the capital of Fujian, China. The city lies between the Min River (Fujian), Min River estuary to the south and the city of Ningde to the north. Together, Fuzhou and Ningde make up the Eastern Min, Mindong linguistic and cultural regi ...

Ningbo Ningbo is a sub-provincial city in northeastern Zhejiang province, People's Republic of China. It comprises six urban districts, two satellite county-level cities, and two rural counties, including several islands in Hangzhou Bay and the Eas ...

Xi'an Xi'an is the list of capitals in China, capital of the Chinese province of Shaanxi. A sub-provincial city on the Guanzhong plain, the city is the third-most populous city in Western China after Chongqing and Chengdu, as well as the most populou ...

Shenyang Shenyang,; ; Mandarin pronunciation: ; formerly known as Fengtian formerly known by its Manchu language, Manchu name Mukden, is a sub-provincial city in China and the list of capitals in China#Province capitals, provincial capital of Liaonin ...

, and

Haikou Haikou; Chinese postal romanization, formerly romanized as Hoihow is the capital city, capital and most populous city of the Chinese province of Hainan. Haikou city is situated on the northern coast of Hainan, by the mouth of the Nandu River. ...

. CFETS self-describes as undertaking daily monitoring on market transactions, and also providing support and service for the PBC monetary policy transmission and market self-regulatory organizations. It publishes market benchmarks, including RMB Central Parity Rate, Shanghai Interbank Offered Rate (Shibor), CFETS RMB Index, Loan Prime Rate (LPR), RMB Reference Rate, Bond Indices, yield curves, etc., offering reference prices for the market. In 2018, trading volume on CFETS exceeded RMB 1 trillion. It served more than 20,000 domestic market trading members, more than 800 overseas institutions, and over 42,000 information and regulatory users. Overseas members include

central bank A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...

s and

sovereign wealth fund A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, Bond (finance), bonds, real estate, precious metals, or in alternative investments such as ...

Leadership

Pei Chuanzhi was the president of CFETS in the mid-2010s. As of early 2024, the CFETS President was Zhang Yi.

References

{{Reflist Finance in China Financial services organizations Financial services companies established in 1994 1994 establishments in China Government-owned companies of China Foreign exchange market The Bund 1994 in Shanghai

Overview

Leadership

See also

References