ICAP’s EBS BrokerTec unveils Chinese benchmark

EBS CNH Benchmark to be the first electronic, trade-backed reference rate for CNH.

ICAP’s foreign exchange and fixed income business EBS BrokerTec, has launched a benchmark reference rate for the offshore Chinese Renminbi (CNH) market.

‘EBS CNH Benchmark’ is the first fully electronic, trade-backed benchmark for CNH, according to EBS BrokerTec.

It will be published to coincide with the close of Chinese markets, so users will have a “direct comparison” of markets during the Asian and European crossover.

EBS BrokerTec claims the benchmark “incorporates rates from trades executed during the fixing window from the EBS Market central limit order book.

Co-head of EBS BrokerTec markets, Darryl Hooker, said the firm recognised the need for the benchmark as “the CNH market continues to grow exponentially with more market participants trading USD/CNH than ever before.”

Gary Licht, director of local currency markets at ICBC Standard Bank added the benchmark will help the development of CNH products.

He said: “The continued internationalisation and liberalisation of the RMB will, no doubt, benefit from a reliable and transparent benchmark in the EMEA time zone.”