On the morning of November 28, the China Foreign Exchange Trade System (CFETS) officially launched the standard interest rate swap business, initially pegging it to the 3-month interbank deposit rates of major national banks. IB, as one of the first quoting institutions, successfully completed multiple transactions on its launch day.
Compared to mainstream interest rate risk hedging tools such as interest rate swaps, treasury bond futures, and standard bond forwards, this newly introduced standard interest rate swap product, linked to the 3-month interbank deposits, is designed to better meet the market’s demand for short-term interest rate risk management. It further complements and refines the full-spectrum product system of interest rate derivatives.
As a principal market maker in the interbank interest rate derivatives market and a first batch quoting institution for the “Swap Connect” program, IB holds over 20% of the total market share in interest rate swaps, maintaining its position in the top tier of the market. The bank possesses extensive experience in derivative trading and strong pricing capabilities.
“Our bank will seize the opportunity presented by the launch of the standard interest rate swap business to continue fulfilling our role as a derivatives market maker. We will fully leverage our cross-market and cross-product pricing advantages, continually expand our domestic and international trading counterparts, actively provide the market with optimal quotations, and contribute our strength to the pricing of the interest rate derivatives curve,” stated the head of the IB’s Capital Operation Center.