What Is Currency Trading?

In order to regulate the behavior of RMB foreign exchange currency swap transactions in the national inter-bank foreign exchange market, maintain market order, and protect the legitimate rights and interests of members of the RMB foreign exchange currency swap market (hereinafter referred to as "members"), No. 211), "Interim Regulations on the Administration of the Interbank Foreign Exchange Market" (Yinfa [1996] No. 423), and "Notice of the People's Bank of China on the Issues Concerning the Establishment of RMB Foreign Exchange Currency Swap Business in the Interbank Foreign Exchange Market" (Yinfa [2007] No. 287) and other relevant laws, regulations and rules and regulations, formulated these rules.

Currency trading rules

Right!

In order to regulate the behavior of RMB foreign exchange currency swap transactions in the national inter-bank foreign exchange market, maintain market order, and protect the legitimate rights and interests of members of the RMB foreign exchange currency swap market (hereinafter referred to as "members"), No. 211), "Interim Regulations on the Administration of the Interbank Foreign Exchange Market" (Yinfa [1996] No. 423), and "Notice of the People's Bank of China on the Issues Concerning the Establishment of RMB Foreign Exchange Currency Swap Business in the Interbank Foreign Exchange Market" (Yinfa [2007] No. 287) and other relevant laws, regulations and rules and regulations, formulated these rules.

Chinese name

Currency trading rules

Foreign name

Currency trading rules

Chapter I General Provisions

Article 2 The renminbi foreign exchange currency swap transactions (hereinafter referred to as " currency swap transactions ") referred to in these rules refer to transactions in which the agreed amount of RMB and foreign currency principal are exchanged within the agreed period, and interest in two currencies is exchanged regularly.

Article 3 (1) The nationwide inter-bank foreign exchange market shall be administered by membership. Under the leadership of the People's Bank of China and the State Administration of Foreign Exchange, the China Foreign Exchange Trading Center (hereinafter referred to as the " Transaction Center ") provides members with a currency swap trading system (hereinafter referred to as the " Transaction System ") and organizes currency swap transactions.

Chapter II Member Management

Article 4 The members referred to in these rules refer to domestic institutions that have membership in the inter-bank RMB foreign exchange forward market and have completed the filing of currency swap transactions with the State Administration of Foreign Exchange through the trading center.

Article 5 A member shall appoint a qualified trader to engage in trading activities on his behalf and be responsible for the trader's trading behavior. Only traders who have been trained by the trading center and obtained a qualification certificate issued by the trading center can perform currency swap transactions in the trading system.

Article 6 Traders shall abide by the relevant regulations of the trading system and consciously maintain market order. For a trader who violates the rules, according to different circumstances, the trading center has the right to give verbal warnings, written notifications, and punishment until his trader's qualification is cancelled. If the circumstances are serious, the member's responsibility shall be investigated.

Article 7 Members shall establish and improve internal management systems and risk prevention mechanisms, take effective measures to monitor and manage currency swap risks, and sign the National Master Agreement on RMB and Foreign Exchange Derivatives in the Interbank Foreign Exchange Market (hereinafter referred to as Agreement " ) and comply with national laws, regulations, rules and other relevant provisions of the interbank foreign exchange market.

Chapter III Trading System

Article 8 The trading time of currency swaps is Monday to Friday 9: 30-17: 30 Beijing time. The domestic legal holidays in China are not open.

The trading time can be adjusted by the trading center after reporting to the competent authority for the record according to changes in market demand.

Article 9 In the event of force majeure, unexpected events, technical failures or other abnormal circumstances identified by the trading center, the trading center may announce the suspension of trading in whole or in part and report to the competent authority for the record. After the above factors have been eliminated, the trading center can decide to resume the transaction and notify members in time.

The trading center shall not be held responsible for the losses caused by the above abnormal situation and the corresponding measures taken by the trading center.

Chapter IV Quotation and Trading

Article 10 Members make currency swap quotes and transactions through the trading system of the trading center.

Article 11 Bilateral inquiry transaction mode is adopted for currency swap transactions.

Article 12 The currency pairs for currency swap transactions are RMB against USD, HKD, JPY, EUR and GBP.

Article 13 The principal exchange forms of currency swap transactions include: (1) On the effective date of the agreement, the two parties exchange the principal of RMB and foreign currency at the agreed exchange rate, and on the expiry date of the agreement, the two parties conduct the exchange at the same exchange rate and the same amount once more. Reverse exchange of principal; (2) Other forms prescribed by the competent authority.

Article 14 The interest exchange of currency swap transactions refers to the amount of interest calculated by the two parties to the transaction in exchange for currency, which can be calculated by the fixed interest rate or the floating interest rate.

Article 15 The reference interest rate of RMB in currency swap transactions shall be the benchmark money market interest rate issued by the National Interbank Funding Center authorized by the People s Bank of China, or the benchmark interest rate for deposits and loans announced by the People s Bank of China; The two parties to the transaction negotiated and agreed.

Article 16 The currency of the currency swap transaction, the principal amount, the transaction period, the exchange rate, the type and duration of the reference interest rate, the principal exchange form, the interest exchange form, the interest payment period and the settlement arrangement shall be negotiated and negotiated by both parties to the transaction. The agreement between the two parties shall not conflict with the relevant provisions of these rules and other relevant documents issued by the trading center.

Article 17 The contract for currency swap transactions in the trading system (hereinafter referred to as the " contract ") is proof that both parties to the transaction have concluded that the currency swap transaction has been completed. The contract is valid after both parties confirm in the trading system.

When the parties to the transaction deem it necessary, they may sign supplementary agreements on breach events, termination events and their handling methods that have not been clearly identified in the main agreement. If the supplementary agreement signed between the two parties of the transaction is in violation of the provisions of the main agreement, such as the applicable law or the dispute settlement clause, the terms of the main agreement shall prevail.

The contract, supplementary agreement (if any) and the main agreement together constitute a complete written transaction contract for currency swap transactions.

Chapter V Liquidation

Article 18 Currency swap transactions shall be liquidated by the parties to the transaction in an agreed manner.

Article 19 The interest payment cycle is weekly, monthly, quarterly, half-yearly, one-year or other terms.

Both parties to the transaction pay interest to the other party on the interest payment date. The interest rate pricing date, value date and interest payment date follow foreign exchange market practices.

If the parties to the transaction have agreed otherwise, the agreement shall prevail.

Chapter VI Emergency Trading and Cancellation

Article 20 If the member end of the trading system cannot normally trade or generate a contract due to a failure of the equipment or communication line, etc., after the parties to the transaction have reached an agreement, the trading center may conduct an emergency transaction.

Article 21 The specific methods of emergency transactions are:

If the member is unable to log in to the trading system, after the two parties to the transaction have reached a negotiation, fill in the emergency transaction application form and stamp the valid seal of the trading department and / or sign by the chief trader, fax it to the fax number designated by the trading center, and immediately contact by phone The designated personnel of the trading center will notify and confirm. After receiving the fax from both parties and verifying the error, the trading center will enter the transaction record and fax the transaction slip to the fax number designated by the member.

Article 22 For currency swap transactions that have been confirmed through the trading system of the trading center, if both parties to the transaction agree to cancel the transaction, the two parties shall sign the transaction note generated by the trading system to explain the reason for cancellation, and stamp the validity of the transaction department. The seal and / or signature of the chief trader, fax to the fax number designated by the trading center, and immediately contact the designated personnel of the trading center by phone for notification and confirmation. After receiving the fax and verification from both parties, the trading center canceled the transaction in the trading system.

Article 23 Members must submit emergency transactions or cancel transaction applications in accordance with the prescribed procedures within the trading hours of the day. The trading center has the right to accept or reject the application on reasonable grounds.

Article 24 Emergency transactions and revocation transactions are temporary operations performed by the trading center in accordance with members' authorized agents, and members bear full legal responsibility for transactions concluded by the trading center's agent operations.

Chapter VII Information Disclosure

Article 25 The trading center shall be responsible for the daily statistics and relevant information disclosure of currency swap transactions according to the authorization of the competent authority.

Article 26 The trading center shall publish currency swap market information and other information to members through trading terminals in accordance with relevant regulations. Members shall not use market market information and other information from the trading center for any purpose other than the relevant regulations.

Article 27 In the event of a dispute over a currency swap transaction, if both parties to the transaction apply for arbitration or bring a lawsuit, the two parties shall send the final result of the arbitration or lawsuit to the trading center as required, and the trading center shall issue an announcement on the day it receives the final result.

Chapter VIII Supplementary Provisions

Article 28: For members who maliciously collude, deliberately breach a contract, or use improper means to disrupt the order of the foreign exchange market (including but not limited to the above) in order to achieve their improper purposes, the trading center will announce it. If the circumstances are serious, the trading center will report it to the competent department, and punish the suspension of trading until the cancellation of its membership.

Article 29 In the event of a dispute between two parties to a currency swap transaction, at the request of one or both parties, the transaction center may provide the necessary original records of the relevant transaction in accordance with relevant regulations. If the dispute affects normal transactions, members should inform the transaction center in a timely manner.

Article 30 The trading center collects relevant fees from members in accordance with the principle of paid services. The charging scheme of the trading center is implemented after being approved by the competent authority.

Article 31 The trading center is responsible for formulating and revising these rules, and reports them to the competent authority for implementation.

Article 32 The interpretation of these rules is the responsibility of the trading center.

Article 33 These rules shall become effective on the date of promulgation.