The State Administration of Foreign Exchange Notice of the State Administration of Foreign Exchange on the Relating Issues of Promoting Spot Inquiry Dealing in Inter-bank Foreign Hui Fa [2005] No.87 To the branches of the State Administration of Foreign Exchange in all provinces, autonomous regions, municipalities, foreign exchange In order to further perfect RMB rate-forming mechanism, develop foreign exchange market, improve liquidity of foreign exchange market In order to facilitate the prompt balance of counter position by banks after the close of inquiry system, inquiry dealing time from China Foreign Exchange Trade Center, after the receipt of this Notice, shall notify members of inter-bank foreign exchange market, The branches of foreign exchange bureau, upon receipt of the Notice, shall promptly transfer it to city commercial banks, rural commercial As for problems in the process of its implementation, please contact with Balance of Payments Department of the State Administration We now give you the notice. Appendix: Rules of RMB Foreign Exchange Spot Dealing in Inter-bank Foreign Exchange Market Promulgated by the State Administration of Foreign Exchange November 24, 2005 Rules of RMB Foreign Exchange Spot Dealing in Inter-bank Foreign Exchange Market Chapter I General Principle Article 1 In order to standardize spot dealing order of RMB foreign exchange in inter-bank market, maintain legitimate rights of members of Article 2 RMB foreign exchange spot dealing (herein after referred to as spot dealing) refers to the foreign exchange to RMB dealing delivered Article 3 Inter-bank foreign exchange market undertakes membership administration, and China Foreign Exchange Trade Center (herein after referred Chapter II Membership Article 4 Membership in the Rules refers to such banks, non-bank financial institutions or non-financial institutions as have met the relevant Article 5 The bank and its branches, established in accordance with the relevant laws and with the qualification for foreign exchange business Article 6 Non-financial institutions and non-bank institutions in conformity to Article 1 of the Notice are enpost_titled to raise application for Article 7 The member herein shall abide by otherwise provisions relating to inter-bank foreign exchange market. Chapter III Elements of Transaction Article 8 Inter-bank foreign exchange market is open from Monday to Friday, close on Saturday and Sunday and otherwise legal holiday within Article 9 The member herein shall authorize the dealer, who has received training from the Trade Center and obtained its certificate of competent, Article 10 The dealer herein shall abide by the relevant provisions of dealing system, consciously maintain market order. The Trade Center is, Article 11 The member herein shall be equipped with electronic dealing system connected with inter-bank foreign exchange market. Article 12 Where the member fails to undertake normal dealing or issue sale slip for such reasons as equipment or communication line fault, it Article 13 In case of force majeure, the Trade Center, after having reported it to competent authority for record, may declare all or partial Article 14 The member may undertake auction dealing or inquiry dealing by means of the trading system of the Trade Center. Chapter IV Auction Dealing Article 15 Auction dealing is undertaken through independent quotation, match deal. The dealing system shall arrange order in accordance with 1) Where the buy-in offer is equal to the selling-out offer, the closing cost shall be the buy-in offer or selling-out offer. 2) Where the buy-in offer is higher than the selling-out offer, the closing cost shall be the earlier one between the buy-in offer and 3) Where either the buying-in offer or the selling-out offer is the market price, the offer with price shall be the market price. 4) Where two of them are market price, the last offer with market price shall be the market price hereof. 5) Where one offer matches part of the sum, the remaining sum shall continue its participation in order arrangement. Article 16 The dealer shall offer quotation within the prescribed range of price. Article 17 After the auction dealing has stricken a deal, the sport auction dealing sale slip, settlement list shall be equivalent to deal contract, Article 18 Capital liquidation of auction dealing 1) Auction dealing undertakes concentrated liquidation. Foreign exchange currency and RMB used for liquidation shall, within the prescribed 2) Liquidation of foreign exchange fund shall be handled via overseas commercial banks, liquidation of RMB fund via “Modern Payment System 3) Where the settlement fund fails to enter account book in time, the Trade Center is authorized to raise warming, notice of criticism, Article 19 The auction dealing is open from 90 to 150 in accordance with Beijing time. Chapter V Inquiry Dealing Article 20 Currency, sum and exchange interest and etc. in inquiry dealing shall be negotiated and agreed by both parties, with the agreement Article 21 After having reached inquiry agreement, the dealer must record the relating dealing elements into dealing system to issue sale slips. Article 22 The sale slips confirmed in the process of dealing by the two parities in the dealing system shall be equivalent to deal contract Article 23 The delivery and settlement in inquiry dealing shall be negotiated and agreed by the two parities hereto, the agreement of the two Article 24 The inquiry dealing is open from 90170 in accordance with Beijing time. Chapter VI Information Disclosure Article 25 The Trade Center shall, in accordance with the authorization from responsibility organs, be responsible for the daily statistics of Article 26 Where the two parties in the dealing intentionally breached the contract through malicious collaboration in order to reach unlawful Article 27 The members can inquire auction dealing and the relevant information of inquiry dealing through dealing system. Article 28 The Trade Center may release relevant information to the public through official media authorized by responsibility organs. Chapter VII Appendix Article 29 The Trade Center, in accordance with compensation principle, shall provide dealing system and relevant services to the members. Article 30 The Rules shall be interpreted by the Trade Center. Article 31 The Rules shall come into effect as of the date of its promulgation. |
The State Administration of Foreign Exchange
2005-11-24