On July 27, ICBC officially signed a RMB interest rate swap agreement with the New Development Bank and completed the filing with the China Foreign Exchange Trading System. It is the first RMB interest rate swap transaction with overseas central bank since the open-up of the inter-bank market to overseas institutions and the first interest rate derivative transaction by a settlement agent representing overseas central bank in the inter-bank market, marking a new stage of the open-up of the RMB interest rate derivative market. As a main market maker in the inter-bank interest rate derivative market and the sole settlement agent of the New Development Bank in China’s inter-bank bond market, ICBC has developed an overall finance service solution such as transaction agency and risk hedge, successfully ending the deal after promptly completing the preparation for the transaction and providing quotation.

Previously named BRICS Bank, the New Development Bank is an international financial institution established by the BRICS members. The New Development Bank completed filling with the China Foreign Exchange Trading System and the National Association of Financial Market Institutional Investors on July 22 this year, becoming the first among the overseas central banks in China’s interest rate swap market.

As a major participant in China’s inter-bank market, ICBC has won several times the “Most Market Influence”, “Best Market Maker” and “Best Settlement Agent of Overseas Institutions” of the inter-bank local currency market rated by the China Foreign Exchange Trading System. As a settlement agent in the inter-bank market, ICBC has been actively engaged in the innovation and opening up of the inter-bank bond market since assisting the first overseas institution in entering the market in 2010. It has so far provided services to overseas institutions from 18 countries and territories. As a main market maker in the inter-bank RMB interest rate derivative market, ICBC has a range of counterparts covering overseas central banks, domestic banks, securities companies, insurance companies and entity enterprises. It provides all interest rate derivatives in the inter-bank market, and has formed sound market making and agent business lines for interest rate derivatives, making it a leading market player in trading RMB interest rate derivatives.