Hong Kong Exchanges and Clearing Limited (HKEx) will introduce renminbi (RMB) currency futures on 17 September. The US Dollar vs Renminbi (Hong Kong) or USD/CNH* Futures contract will be the world’s first deliverable RMB Currency Futures.
USD/CNH Futures will require delivery of USD by the seller and payment of the Final Settlement Value in RMB by the buyer at maturity. The futures will be quoted in RMB per USD (for example, RMB 6.2486 per USD) and margined in RMB, with the trading and settlement fees charged in RMB. The final settlement price will be 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 fixing is available on TMA's website).
The following contract months will be available for trading on 17 September: October 2012, November 2012, December 2012, January 2013, March 2013, June 2013 and September 2013. Details of the contract specifications and a list of information vendor codes for USD/CNH Futures are attached below (they will also be available on the HKEx website). Margin requirements and market makers will be announced before the launch date.
So far, more than 1,000 market practitioners and investment professionals have attended a seminar or briefing on the new futures and more events are planned.
"These new futures are part of our strategy to offer a wide range of RMB-related products and expand beyond equities and equity-related derivatives into fixed income, currencies and commodities," said HKEx Chief Executive Charles Li. "In addition, they will help us support RMB internationalisation and Hong Kong's further development as an offshore RMB centre."
"Although we do not have any volume or open interest targets, we see great long-term potential in RMB currency futures," said Calvin Tai, HKEx’s Head of Trading.
* USD - US dollar; CNH - Renminbi traded in Hong Kong.
Contract Specifications for
US Dollar vs Renminbi (Hong Kong) (USD/CNH) Futures
The following Contract Specifications shall apply to the USD/CNH Futures Contract: