October 31, 2016 (New York/San Francisco/London) – Financial innovation firm R3 has announced the addition of China Foreign Exchange Trade System (CFETS), China’s official interbank market trading platform, to its consortium to design and apply distributed and shared ledger-inspired technologies to global financial markets.
Headquartered in Shanghai, CFETS provides a series of services covering issuance, trading, information and post-trade for cash and derivative RMB-denominated interest rate, exchange rate and related products.
CFETS will be collaborating with the world’s largest financial institutions to develop ground-breaking commercial applications for the financial services industry that leverage the appropriate elements of distributed and shared ledger technology.
The R3 team of financial industry veterans, technologists and blockchain and cryptocurrency experts collaborate with consortium members on research, experimentation, design and engineering to help advance this technology to meet banking requirements for identity, privacy, security, scalability, interoperability and integration with legacy systems.
Consortium members work closely with R3 to develop Corda™, its shared ledger platform specifically designed to record, manage and synchronise financial agreements between regulated financial institutions. It is heavily inspired by and captures the benefits of blockchain systems, without the design choices that make blockchains inappropriate for many banking scenarios.
David Rutter, CEO of R3 comments: “Acknowledging the Chinese renminbi’s growing prominence in trading and the crucial role China holds in the global financial markets, we are delighted to welcome CFETS to the R3 consortium. Their expertise will be an enormous asset as we develop universal applications for distributed ledger technology across increasingly globalised financial markets.”
Zaiyue Xu, Executive Vice President of CFETS, comments: “CFETS is committed to establishing technical standards and improving the ecosystem of China interbank market, and we have noticed that blockchain is an emerging technology with great promise to reshape the market. Through cooperation with R3, we hope to build the infrastructures and platforms for blockchain application in the financial market together with international counterparts.”
CFETS will join the global network of R3 partners united in its lab environment, the R3 Lab and Research Centre, which has quickly become a center of gravity for collaborative research and testing of distributed and shared-ledger inspired technologies.
R3 is leading a consortium with over 60 of the world’s largest financial institutions to develop ground-breaking commercial applications for the financial services industry that leverage the appropriate elements of distributed and shared ledger technology.
Operating in New York, London and San Francisco, the R3 team is made up of financial industry veterans, technologists, and new tech entrepreneurs, bringing together expertise from electronic financial markets, cryptography and digital currencies.
The R3 Lab and Research Centre has quickly become a centre of gravity for collaborative research and testing of distributed and shared-ledger inspired technologies, and is where R3 works with its partners to define, design and deliver the next generation of financial infrastructure.
About China Foreign Exchange Trade System
China Foreign Exchange Trade System and National Interbank Funding Center, also known as CFETS, was founded in 1994. Under the state’s strategic guidance to develop the interbank markets, CFETS follows the principles of “multiple technical approaches, various trading mechanisms and satisfying demands from multi-tiered markets”, and commits to infrastructure construction, product and mechanism innovation on China’s interbank markets, aiming to build itself as “a global major trading platform and pricing center for RMB and related products”.
On every business day, CFETS publishes market benchmarks including the central parity rate of RMB, Shanghai Interbank Offered Rate (Shibor), Loan Prime Rate (LPR), Repo fixing rates, bond indices and yield curves.
Its customers include more than 10,000 market participants as well as over 33,000 information and surveillance service users. In 2015, the total trading volume amounted to over RMB 700 trillion.
Nick Warren/Ellie McFatridge
+44 (0)207 440 9780
+1 917 855 8529
China Foreign Exchange Trade System:
Weiwei (Diana) Shen
+86 21 20693831