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| Li: CFETS will help China integrate |
Royal Bank of Scotland ranks number one on the new China foreign exchange trading system (CFETS) since it went live in May. It can now boast a market share of just below 35% by the number of deals and 40% by volume up to June 17 2005. This is good news for the 10 market-making banks participating in the project, which includes other top FX players such as HSBC, Deutsche Bank, Citibank and ABN Amro. It's also a sign China's banking community is gaining much-needed experience in trading currencies other than the renminbi.
CFETS is a subsidiary of Bank of China and is the only organization licensed to trade foreign exchange in China. Membership now exceeds 360 members, of which more than 30 are trading on the system. Historically, domestic banks have been allowed to trade only a handful of renminbi currency pairs but the new portal enables the inter-bank market to trade US dollar against the euro, yen, Hong Kong dollar, sterling, Swiss franc, Australian dollar and Canadian dollar, plus euro against yen.