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Interbank Market-making Transaction of Bulk Commodity

I. Description
Interbank market-making transaction of bulk commodity means that ICBC provides bulk commodity quotation and transaction services for interbank customers by systems like interbank market-making transaction. There are different transaction types and trading commodities.
The transaction type includes commodity forward transaction, commodity swap transaction and commodity option transaction. Commodity transaction product includes five categories (metals, energy, base metals, agricultural products and soft commodities) containing 37 sub-categories.

II. Target Customers
The target customers are those financial institutions with bulk commodity trading demands and derivatives trading qualification.

III. Functional Features
ICBC makes the bulk commodity trading more convenient for interbank financial institutions by the interbank market-making transaction of bulk commodity.

IV. ICBC Advantages
1. Favorable commodity transaction prices. As a financial institution with eminent power, ICBC offers competitive trading quote.
2. Rich transaction types. Transactions are available on commodities include five categories (metals, energy, base metals, agricultural products and soft commodities) containing 37 sub-categories.
3. Team advantages. Strong support for businesses would be offered by parameter-based system, professional technical team and the 24/7 transaction system in Beijing, London and New York.
4. Currency advantages. ICBC is the first domestic commercial bank that provides RMB settlement commodity transaction, and it can offer bulk commodity transaction services settled in both USD and RMB.

V. Product Price
ICBC offers transaction quotation to customers based on comprehensive consideration of the price trend on the global commodity market, exchanges rate of RMB and market liquidity, and may adjust the transaction quotation in light of the market conditions.

VI. Service Channels and Hours
Interbank customers could make bulk commodity transaction with ICBC through the ICBC interbank market-making transaction system.
Transaction hours are from 9 a.m. to 4 p.m. on Monday to Saturday (except national holidays. Specific transaction hours shall be subject to ICBC announcement).

VII. Application Process
1. Signing an agreement.
Interbank customer should sign relevant business agreement with ICBC before making bulk commodity transaction.
2. Conclusion of transaction.
Interbank customers could view the bulk commodity market-making quotation of ICBC in the interbank market-making transaction system. They could close a transaction by directly confirming in the system if they accept the quote.
Interbank customer could also send inquires to ICBC traders through the system according to their needs. (The inquires may include transaction types, trading commodities, trading direction and transaction amount). ICBC traders would give the latest quote. If the customer agrees with it, the transaction shall be closed.

VIII. Risk Prompt
Due to the uncertainty of the commodity price and the exchange rate in the future, customers may experience market risk brought by the volatility.

Note: The information provided on this page is for reference only. Specific businesses shall be subject to the announcement and provisions of the local outlet.

Global Market