China Foreign Exchange Trade System Selects Reuters to Build Global Trading Platform.

BEIJING, China -- A paragraph has been added to the original release (paragraph 3).

The corrected release reads:

CHINA FOREIGN EXCHANGE TRADE SYSTEM SELECTS REUTERS TO BUILD GLOBAL TRADING PLATFORM

The China Foreign Exchange Trade System (CFETS) and Reuters (LSE:RTR), have signed an agreement for the provision of a global foreign exchange trading system for CFETS and its member banks. CFETS is a subsidiary of the Peoples' Bank of China (PBC), and Reuters is a global information company.

CFETS, the operator of China's interbank FX trading system, has selected Reuters proven technology to provide a real-time internet-based FX platform for its member banks. As part of the agreement, CFETS will deploy Reuters Electronic Trading for Automated Dealing (RET-AD) at its centre in Shanghai. Currently, CFETS has more than 300 member banks.

The liquidity of the system will be provided by market makers of the leading global financial institutions, including ABN AMRO, HSBC, Bank of Montreal, Bank of China, CITIC Industrial Bank, ING, Royal Bank of Scotland, Deutsche and Citibank.

CFETS member banks will be able to obtain 'best bid' and 'best offer' streaming executable prices either over the Internet or via leased line circuits and trade anonymously with the liquidity providers. CFETS will offer full trading, settlement and clearing facilities to all its members and market makers. For domestic banks in China, they can leave orders, request a price or execute FX transactions with a single click for any non-RMB currency pair.

Lin Yu Li, President, CFETS, said: "We are proud to be building a timely FX trading system that seamlessly connects with international markets and offers our member banks FX trading, including spot exchange, settlement and clearing facilities. We have selected Reuters because of their proven technology platform which is used by the best-in-class banks. In the future, we plan to explore adding new financial variety and instruments on the trading system."

Mark Redwood, Managing Director, Reuters Automated Dealing Technologies said: "China's FX marketplace shows accelerating growth and CFETS plays a vital role in establishing trading requirements and selecting the leading edge technology that can help its member banks expand and grow new business services. CFETS has taken a significant decision to allow member banks and their corporate clients to trade over a Reuters global foreign exchange trading platform."

Marc Duale, Reuters Asia Managing Director said: "We are very pleased that CFETS has selected Reuters to help bring them and their member banks an advanced foreign exchange trading platform. We see this as an important first step in our long-term relationship with CFETS as it carries out constant innovation of content and open technology, working hard to provide market members with efficient services and new trading opportunities."

Reuters Automated Dealing Technologies business specialises in providing leading-edge technology to financial institutions and their customers to conduct FX and money-market transactions in a real-time environment. The group has provided Electronic Trading solutions to over 60 leading global financial institutions including ABN AMRO, Bank of America, Bank of New York, Dresdner Kleinwort Wasserstein, HSBC, UBS, amongst others.

ABOUT CFETS

In February 1994, the People's Bank of China (PBC) decided to set up CFETS in Shanghai to meet the demands of the country's FX administration system reform. The CFETS officially started operation on April 4 of the same year. From then, China's interbank market has grown from small to large and has expanded its business from the mainland to Hong Kong and Macau. Its financial infrastructure improves constantly, and market operational efficiency rises with each passing day. All these historic evolutions and advances have laid a solid foundation for a national unified interbank market.

Over the past ten years, under the direct leadership of the PBC and the SAFE, with great support from the central and local governments, and also with the joint efforts of all the market participants, the CFETS has fulfilled the obligations prescribed by the PBC and devoted itself to establishing and improving a national unified, diversified, and highly efficient money market system. Under the guideline of using "multiple technological means and trading patterns to meet market demands of various levels", and with respect to market principles, the CFETS carries out constant innovations of service content, service means, and market mechanisms, working hard to provide market members with qualified services. By using advanced electronic information technology, the Internet and leased line, CFETS has set up the three service platforms of trading, information and supervision. The CFETS thus plays an increasingly important role in facilitating financial institutions' managing liquidity and adjusting capital structures; improving the RMB exchange rate forming mechanism; communicating and implementing RMB monetary policy; forming RMB exchange rates, interest rates, and yield curves; and offering online surveillance to supervisory authorities.

About Reuters

Reuters (www.about.reuters.com), the global information company, provides indispensable information tailored for professionals in the financial services, media and corporate markets. Our information is trusted and drives decision making across the globe based on our reputation for speed, accuracy and independence. We have 14,700 staff in 92 countries, including some 2,400 editorial staff in 197 bureaux serving approximately 130 countries, making Reuters the world's largest international multimedia news agency. In 2003, the Reuters Group had revenues of GBP3.2 billion.

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