Bloomberg has announced today that it will begin distributing live interbank pricing for the onshore renminbi market (CNY). The tick by tick data provided from the China Foreign Exchange Trade System will allow users to gain better control for pricing and hedging of China related business.
While not maybe not as exciting as the errant launching of Greek Drachma quotes on it terminal, the renminbi pricing will be much more useful as it fills an important gap for both on and offshore companies conducting global business with China. Demand for more Chinese currency related products has been strong in 2012 with more and more brokers providing NDFs and more recently deliverable futures this year. As such, as renminbi trading becomes more prevalent and foreign banks increase their involvement with the currency, we are seeing more an offshore market taking place.
Bloomberg First to Deliver China Interbank FX Rates Globally
New service provides investors with real-time insights into onshore renminbi market
November 28th, 2012
Hong Kong, London — Bloomberg today announced the first global, real-time data service that provides investors access to live interbank pricing for China’s onshore renminbi (CNY) market. This service captures currency trading activity among banks and financial institutions in China, and is provided through the China Foreign Exchange Trade System (CFETS), the official interbank trading and foreign exchange (FX) division of China’s central bank.
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“The addition of the CFETS data gives investors insights into real-time tick-by-tick movement, volumes and market participant information in China’s onshore interbank market,” said Tod Van Name, Bloomberg’s Global Head of FX, Economics and Commodities. “Given the rapid internationalisation of the Chinese Yuan, this data is imperative to global markets as it provides our clients greater transparency for smarter and more timely trading, hedging and investment decisions.”
Global currency traders, corporate treasurers and institutional investors can now view executable quotes and trades on the interbank dollar-yuan spot, swap and forward markets. The CFETS data service also features the best renminbi spot prices from participating banks, historical trade sizes, and eight other renminbi currency pairs. Combined with Bloomberg’s FX suite, market participants can connect to global counterparties and liquidity, and access Bloomberg’s global FX trading community.
“The provision of real-time China interbank FX rates to international investors is yet another step in the right direction,” said Sam Phoen, head of global markets, ANZ bank (China). “Onshore corporations and investors will benefit from real-time executable rates, while offshore players who are invested in China will have better visibility when hedging against movements of the renminbi.”
According to CFETS’ publication ChinaMoney, with renminbi cross- border inflows and outflows intensifying in 2012, development of the offshore renminbi market will drive domestic financial market reform, and aid in a fair and transparent price discovery process for renminbi foreign exchange rates.
“BNP Paribas is one of the first international banks to access Bloomberg’s CFETS service,” said Julien Martin, Deputy Head of Fixed Income, BNP Paribas China. “Offshore players can now access accurate interbank dollar-yuan rates that better reflect market conditions, providing investors with a critical edge in foreign exchange transactions amidst today’s volatile trading environment.”
This announcement follows Bloomberg’s leadership in the evolution of the offshore renminbi (CNH) market, which includes the development and adoption of the CNH code, provision of its price history and introduction of the offshore renminbi bond listing and index.