What is a market maker in foreign exchange?

Market makers in the inter-bank foreign exchange market refer to the members of the inter-bank foreign exchange market who, with the approval of the State Administration of Foreign Exchange, undertake the obligation of continuously providing buying and selling prices to market members when trading RMB and foreign currency in the China inter-bank foreign exchange market.

Judging from the situation of major international foreign exchange markets, market makers play an important role in providing liquidity in the foreign exchange market, improving market transaction efficiency, transferring and sharing risks, and promoting market development.

The Guidelines for Market Makers in the Inter-bank Foreign Exchange Market (Provisional) stipulates that:

Market makers in the inter-bank foreign exchange market should meet the following basic conditions:

(1) Abide by the relevant regulations of the People's Bank of China and the foreign exchange bureau, and have no record of illegal settlement and sale of foreign exchange and foreign exchange market transactions within two years before submitting the application; ?

(2) Having a sound foreign exchange business risk management system, internal control system and strong financing capacity in local and foreign currencies. ?

(3) Centralized management of comprehensive positions in foreign exchange settlement and sale; ?

(4) Being a member of the inter-bank foreign exchange market for more than two years. ?

(5) The scale of RMB and foreign currency transactions in the inter-bank spot foreign exchange market in the first half of the year ranked within the top 30 (inclusive); ?

(6) In the first half of the year, the scale of cross-border revenue and expenditure on behalf of customers in China ranked within the top 50 (inclusive); ?

(7) The capital adequacy ratio of the whole bank reached 8% or the foreign exchange capital was equivalent to more than 654.38 billion US dollars in the latest year. ?

Any financial institution that meets the above conditions of this article may apply to the foreign exchange bureau. The foreign exchange bureau selects and adjusts the market makers in the inter-bank foreign exchange market according to the above basic situation and market conditions.

List of market makers in inter-bank foreign exchange market

Release date: 2007- 12-3 1 Source: State Administration of Foreign Exchange.

Serial number library

1 Bank of China

2 China Construction Bank

3 CITIC Bank

4 China Merchants Bank

5 The Bank of Montreal, Canada Limited Guangzhou Branch

6 Citibank (China) Limited

7 Industrial and Commercial Bank of China

8 Bank of Communications

9 Agricultural Bank of China