EBS BrokerTec, a subsidiary of the electronic forex exchange of ICAP, a UK-based institutional brokerage and market operator, and ICAP’s information division Information Services (IIS), announced they have launched the EBS CNH Benchmark – the first fully electronic trade-backed reference rate for the offshore Chinese renminbi (CNH) market.
The new service will allow market participants a direct comparison of CNY and CNH market activities and has been prompted by the considerable interest from a number of major Chinese banks and onshore authorities.
The EBS CNH Benchmark is calculated and distributed by IIS. It incorporates rates from executed trades during the fixing window from the EBS Market central limit order book and is based on a transparent and reliable methodology.
Recently the Chinese government-controlled China Foreign Exchange Trade System (CFETS) chose ICAP as provider of the underlying technology for the country’s forex exchange and fixed income electronic execution services through EBS BrokerTec. According to ICAP’s estimates, around 70% of all CNH interbank activity is traded on the EBS Market with the USD/CNH being the third most traded currency pair on the platform.
“The CNH market continues to grow exponentially with more market participants trading USD/CNH than ever before,” said Darryl Hooker, Co-Head of EBS BrokerTec Markets and added that the launching of the dedicated benchmark for this market was the next logical step.
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.