Reuters scores FX deal with the China Foreign Exchange Trade System
13 October 2004 | 11211 views | 0
The China Foreign Exchange Trade System (CFETS), a subsidiary of the People's Bank of China, has inked an agreement with Reuters for the provision of a global foreign exchange trading system for CFETS and its 300 member banks.
As part of the agreement, CFETS, the operator of China’s inter-bank FX trading system, will deploy Reuters Electronic Trading for Automated Dealing (RET-AD) at its centre in Shanghai.
The liquidity of the system will be provided by global market makers, including ABN AMRO, HSBC, Bank of Montreal, Bank of China, CITIC Industrial Bank, ING, Royal Bank of Scotland, Deutsche and Citibank.
CFETS member banks will be able to obtain 'best bid' and 'best offer' streaming executable prices either over the Internet or via leased line circuits and trade anonymously with the liquidity providers. CFETS will offer full trading, settlement and clearing facilities to all its members and market makers.
Reuters says China’s FX marketplace had shown accelerated growth, with CFETS playing a central role. CFETS also provides systems for interbank lending, bond trading and commercial paper.
Lin Yu Li, president, CFETS, says of the Reuters' FX deal: "In the future, we plan to explore adding new financial variety and instruments on the trading system."