• Hong Kong's first pair of physically settled commodity futures
• Contracts comprise Spot Month and next 11 calendar months
• Trading Fee and Commission Levy waived for the first six months of trading

Hong Kong Exchanges and Clearing Limited (HKEX) will introduce its planned Offshore Renminbi (CNH) and US dollar (US$) Gold Futures on Monday, 10 July 2017.

They will be the first pair of commodity futures that can be physically delivered in Hong Kong.

The 12 Contract Months on the launch day will comprise the Spot Month (August 2017 ) and next 11 calendar months (September, October, November, December 2017 and January, February, March, April, May, June, July 2018).

Fee Waiver and Levy Exemption

HKEX will waive its Trading Fee and Settlement Fee during the first six months of trading of the new products. The contracts will also be exempted from the Commission Levy throughout the same period.

Liquidity Provision and Joint Promotion Programme

Through an incentive and fee rebate programme, HKEX has appointed Liquidity Providers and Proprietary Traders to provide liquidity for the Gold Futures contracts. A Joint Promotion Programme has also been introduced to support eligible participants in running marketing and educational programmes to enhance investors' knowledge of the Gold Futures contracts. Eligible applicants include Futures Exchange Participants (EPs), information vendors and financial industry associations.

Physical Settlement Details

The list of EPs with physical delivery capabilities, and the list of recognised parties involved in the chain of integrity (recognised refiners, recognised forwarders, etc) will be published in the product section of the HKEX website in due course.

Additional information on HKEX's CNH and US$ Gold Futures is available in a circular posted today on the HKEX website.

Note:

The London Metal Exchange (LME), a wholly-owned subsidiary of HKEX, plans to introduce its own US$-traded gold futures contract on 10 July 2017, subject to regulatory approval. This will be rolled out alongside a US$-traded silver futures contract through LMEprecious, an initiative of the LME, the World Gold Council and a group of leading industry participants. For further details, please see the LME website.