MANILA, Philippines — Major stakeholders of the peso – renminbi (RMB) spot market that was launched recently has tapped Bloomberg to provide a reliable electronic trading platform.
Deng Jun, country manager of the Bank of China Manila branch, said the Philippine RMB trading community has adopted Bloomberg FXGO to be the electronic trading platform for the new peso-RMB spot market.
Deng, who also chairs the Philippine RMB Community, said the group is pleased to work with Bloomberg on the development of the new peso-RMB spot market.
“Investors, traders and tourists of the Philippines and China will all benefit from direct trade. We believe a robust peso-RMB foreign exchange trading market requires a reliable electronic trading platform,” he added.
Bloomberg will support trading of spot peso-RMB among member banks through Bloomberg FXGO, a commission-free trading platform for execution of a number of instruments including spot, forwards, swaps, and deposits.
Peso-RMB trading can be done using a variety of trading protocols including request for quote, trade affirmation as well as Bloomberg’s IB Dealing. Trade tickets can be captured into the respective parties’ risk management and back office systems.
Bank of China Manila branch earlier inked a memorandum of agreement with 13 local banks to create the RMB Trading Community in the Philippines and facilitate direct foreign exchange trading between the RMB and peso.
Banks that signed the agreement include Asia United Bank, Bank of Commerce, Ayala-led Bank of the Philippine Islands, BDO and China Bank of retail and banking magnate Henry Sy, Gotianun-led EastWest Bank, Ty-owned Metropolitan Bank & Trust Co., Philippine Bank of Communications, Philippine Business Bank, Philippine National Bank of tobacco and airline tycoon Lucio Tan, Yuchengco-led Rizal Commercial Banking Corp., Security Bank Corp., and Aboitiz-led UnionBank of the Philippines.
During Chinese President Xi Jinping’s state visit to the Philippines, Bank of China announced that the bank has executed the first batch of peso-RMB trading with AUB, BDO, EastWest Bank, Metrobank, and RCBC through Bloomberg’s platform.
“We are honored to be the electronic trading platform for the new peso-RMB spot market and play a role in facilitating deeper economic ties between China and the Philippines,” Bloomberg Asia Pacific head Taran Khera said.
“Bloomberg is committed to partnering with Bank of China and all Chinese clients to promote RMB internationalization and connecting China to ASEAN and global markets,” Khera added.
The organization of this community is part of a three-stage development plan of Bank of China and PDS Holdings Corp. to develop the domestic RMB services in the country.
It aims to lower transaction costs and promote the direct use of peso-RMB to further strengthen the economic and financial relationship between the Philippines and China, bringing convenience, financial benefits and stronger ties between “Belt and Road Initiative” member nations.