Frequently Asked Questions 
14/09/2012 
 
Chapter 7 Products - Derivatives Market

7.5

Currency Futures

 

7.5.1    

What are Renminbi (RMB) currency futures?  What are their characteristics? 

RMB currency futures are futures contracts based on the exchange rates between RMB and other currencies.  HKEX’s first RMB currency futures contract is based on the currency pair USD/CNH.  CNH refers to the RMB circulated in Hong Kong.  They are the first exchange-traded currency futures settled in RMB. 

HKEX's RMB currency futures contract is designed to provide a way for investors to hedge RMB exposure.  It requires delivery of USD by the seller and payment of the Final Settlement Value in RMB by the buyer at maturity.  Contract is quoted in RMB per USD and margined in RMB, with the trading and settlement fees charged in RMB.  The final settlement price of the contract is based on the spot USD/CNY(HK) fixing published by the Treasury Markets Association (TMA) at 11:15 am on the Last Trading Day.  The Last Trading Day is two business days prior to the Final Settlement Day, which is the third Wednesday of the Contract Month.

 

7.5.2

What is the Spot USD/CNY(HK) Fixing of Treasury Markets Association (TMA)? 

The Spot USD/CNY(HK) Fixing of TMA is the benchmark for market exchange rate of USD against CNY(HK).  The Spot USD/CNY(HK) Fixing is published at around 11:15 am Hong Kong time each business day (excluding Saturdays) on TMA’s website (www.tma.org.hk). 

 

For more information, investors may refer to “RMB Currency Futures” under "Products & Services” of the HKEX website.