Bank of China HK to provide liquidity on EBS Direct

The addition will provide deeper liquidity and more transparency in CNH, already a top-three currency on the venue

hong-kong
Plain sailing: “We will be offering clients competitive prices in RMB and other major FX currency pairs" – Bank of China

Bank of China (Hong Kong) has joined EBS Direct as a liquidity provider (LP), adding pricing in the offshore renminbi and other major currencies.

EBS Direct, the fully disclosed, relationship-based FX platform owned by Nex Markets, currently has more than 50 LPs active across G10, emerging markets and niche currencies.

“The addition of Bank of China HK represents an important step in improving liquidity in CNH and for Asia-Pacific as a region,” the press release from the platform said. “Adding key market LPs to the EBS Direct platform is vital for clients who value the specialised expertise and insight, as well as the opportunity for improved liquidity and pricing.” 

The ties between Nex Markets and China tightened in June last year, when the China Foreign Exchange Trade System (CFETS) – the country’s official interbank market-trading platform and infrastructure provider – appointed the company (then still called Icap) as the supplier of technology for fixed-income and FX electronic execution services.

The deal with CFETS has been valued at $65 million over a three-year period. Nex Markets has opened a local office and development centre in Shanghai, and expanded its footprint in mainland China.

As part of the deal, CFETS will use Nex Markets’ technology to provide central limit order book and disclosed-trading models for spot, forwards and swaps, and a disclosed-trading model for cash bonds to the onshore renminbi market.

The relationship between the platform and CFETS goes back to 2007, with the creation of Shanghai CFETS-Icap, a joint venture offering broking and information services for on- and offshore interbank foreign exchange, money markets, bonds and derivatives.

The addition of Bank of China HK to EBS Direct will further cement the platform’s footprint in the Chinese renminbi market. The USD/CNH pair is already in the top three most-traded pairs on the venue.

We are committed to providing professional and leading products and services in the offshore RMB markets
Tony Wang, Bank of China HK

“We are extremely pleased that such an important player in the CNH market is joining the platform as an LP. As the Chinese yuan moves closer to internationalisation, this can only enhance our customers’ access to liquidity, improved pricing and certainty of execution,” said Jeff Ward, global head of NDFs (non-deliverable forwards) and forwards, and head of FX Asia at Nex Markets.

“Being the leading commercial banking group and the designated clearing bank in Hong Kong for offshore RMB business, we are committed to providing professional and leading products and services in the offshore RMB markets,” said Tony Wang, general manager of global markets at Bank of China HK.

“We will be offering clients competitive prices in RMB and other major FX currency pairs, which we believe is essential for the market. EBS Direct’s global distribution network will help us to provide customised pricing liquidity where it’s needed most,” he added.  

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: