Do not invest more money than you can afford to lose.
China Foreign Exchange Trade System (CFETS), the government-controlled inter-bank market trading platform and infrastructure provider, chose ICAP, UK-based institutional brokerage and market operator, as provider of the underlying technology for the country’s forex exchange and fixed income electronic execution services.
The technology will be delivered by EBS BrokerTec, ICAP’s electronic forex and fixed income business. It will provide the core trading components of CFETS’ “Next Generation Trading System” (NGTS), which has been in the works for several years. The new trading system will enhance CFETS’ capability to offer central limit order book and disclosed trading models for forex spot, forwards and swaps and a disclosed trading model for cash bonds, to the onshore renminbi market, through a localized EBS BrokerTec Graphical User Interface (GUI).
The deal between ICAP and CFETS is valued at $65 million over a three-year period and will provide expansion opportunities for the company. Furthermore, EBS BrokerTec will set up an office and development center in Shanghai.
This is not the first joint project of ICAP and CFETS. The two entities have been collaborating successfully for nine years on various projects, including broking information and services in the onshore and offshore interbank foreign exchange, money market, bond and derivatives market.
“This is a hugely exciting project for EBS BrokerTec and we are looking forward to working with CFETS to shape market development in the Chinese FX and fixed income trading markets,” said Gil Mandelzis, CEO of EBS BrokerTec. “CFETS’ decision to use EBS BrokerTec technology to launch NGTS is a resounding endorsement for the quality of our technology and our role as a trusted provider of trading infrastructure and venues globally, across multiple asset classes.”
ICAP is a leading markets operator and provider of information and risk mitigation services. It acts as a wholesale broker on the forex, commodities, credit, interest rates, and emerging markets.
Its unit EBS BrokerTec is an electronic wholesale trading platforms and solutions business in forex and fixed income. It provides two trading platforms – EBS and BrokerTec. The EBS Market connects buyers and sellers of currencies in over 50 countries across six continents.
CFETS is established in 1994 and is also known as the National Interbank Funding Center. It provides technology multiple trading models serving multi-tiered markets, trading infrastructure and innovative products to the Chinese interbank market. The company’s aim is to establish itself as ‘a global major trading platform and pricing center for RMB and related products’.