Trading Specifications

Definition of Instrument

Interbank lending refers to no-guarantee financing business which is dealt through the trading system of the CFETS by and among financial institutions which link the CFETS via the network.

Trading Mechanism

Bilateral trading

Terms

For interbank lending, the shortest term is 1 day, and the longest term is 1 year. The CFETS is responsible for calculating and publicating the weighted average rates in accord with a total of 11 terms including 1-day, 7-day, 14-day, 21-day, 1-month, 2-month, 3-month, 4-month, 6-month, 9-month, and 1-year.

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

Market participants include commercial banks and their authorized branches, rural credit cooperatives, urban credit co-operatives, financial companies and securities companies and other relevant financial institutions which are approved by PBC and have independent legal entity qualifications, and foreign-funded financial institutions which can conduct RMB business by the PBC approval.

Method of Clearing & Settlement

Both trading parties, at the specified date, shall handle gross settlement at their own risk in accordance with deal sheet. The speed of settlement is T +0 or T +1.