Trading Specifications

Definition

G10 currency pairs swap involves the actual exchange of two currencies (FX against FX) on a specific date at a rate agreed in the contract (the short leg), and a reverse exchange of the same two currencies at a date further in the future at another rate (generally different from the rate applied to the short leg) agreed in the contract (the long leg).         

Specification

The objective currency, amount, tenor, exchange rate, price (swap point) and settlement arrangement are to be negotiated by the two parties.            

Trading Mechanism

Bilateral trading

Instruments

Swap transactions for 11 currency pairs of AUD/USD, EUR/JPY, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/HKD, USD/JPY, USD/SGD, NZD/USD and EUR/GBP.           

Trading Hours

Beijing time: 7:00am-11:30 pm, excluding Chinese statutory holidays.         

Method of Clearing & Settlement

Bilateral clearing                      

Definition

G10 currency pairs forward trading is a binding obligation between the trading parties in the national interbank FX market to buy or sell a certain amount of foreign currency at a contracted rate of exchange on a certain date in the future (at least two business days from the trading date).          

Specification

Items, such as currencies, amount, maturity, exchange rate, margin and settlement arrangement etc., are to be negotiated by the two parties.            

Trading Mechanism

Bilateral trading

Instruments

Forward transactions for 11 currency pairs of AUD/USD, EUR/JPY, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/HKD, USD/JPY, USD/SGD, NZD/USD and EUR/GBP.           

Trading Hours

Beijing time: 7:00am-11:30 pm, excluding Chinese statutory holidays.         

Method of Clearing & Settlement

Bilateral clearing