Trading Specifications

Definition of Instrument

Bond forward transaction refers to a transaction act where two trading parties, at an agreed date, sell and buy bonds at the specified price and quantity. Bond forward transaction shall be dealt through the trading system of CFETS.

Underlying Bonds

Underlying bonds for forward transactions, in terms of types, should be treasury bonds, central bank papers, and financial bonds for which cash bond transaction are conducted in the national interbank bond market, and other bonds approved by the PBC.

Trading Mechanism

Bilateral trading

Terms

The term of a forward contract is the time period ranging from deal date to settlement date (including deal date but excluding settlement date), which is determined by both trading parties but shall be not more than 365 days.    

Trading Hours

T+0: Beijing time 9:00-12:00 am, 1:30-4:50 pm, 

T+1: Beijing time 9:00-12:00 am, 1:30-5:00 pm, 

excluding Chinese statutory holidays.

Market Participants

Of the national interbank bond market participants (the market participants), financial institutions having a market maker or clearing agency business qualification, can conduct bond forward transaction with all other market participants, and other financial institutions can conduct bond forward transaction with all financial institutions, and non-financial institutions can only carry out hedge-purposed bond forward transaction with the financial institutions having a market maker or clearing agency business qualification.