USD/CNH Options

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Since the CNH trading was first introduced in Hong Kong in 2004, its market size has expanded exponentially on the back of China’s fast transformation into a leading trading country. The growth of the dim sum bond market, expansion of foreign capital participation in the Chinese securities markets, and RMB internationalisation have created demand for products, which could help market participants hedge their CNH exposure. Responding to such market requirements, HKEX introduced USD/CNH futures in 2012 and following their success and anticipating growing needs for more flexible hedging tools, HKEX introduced the exchange traded USD/CNH options as part of its strategy to build up a full range of foreign exchange derivatives products.

Updated 03 May 2022

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Advantages

Flexibility of trading and hedging strategies for various market conditions
Limited counterparty risks
Transparency and efficiency of standardised
Exchange-traded contracts
Cost effectiveness of trading on a margin basis
Block trade facilities supported by the HKATS
Variety of eight contract-month tenors, the longest being 16 months

Contract Summary

Item

Contract Terms

HKATS Code

CUS

Contract Size

USD 100,000

Price Quotation

Amount of RMB per USD

Options Premium

4 decimal places (i.e. 0.0001)

Tick Value

RMB 10

Strike Prices

Strike intervals will be set at 0.05

Official Settlement Price

USD/CNY (HK) Spot Rate published by Hong Kong Treasury Markets Association (TMA) at or around 11:30 a.m. on the Expiry Day

Settlement on Exercise

Physical delivery on exercise

	Holder	writer
Call Options	Payment of the Final Settlement Value in RMB	Delivery of US dollars
Put Options	Delivery of US dollars	Payment of the Final Settlement Value in RMB

Example on Final Settlement Process

Exercise Style

European style

Contract Months

Spot month, the next three calendar months and the next six calendar quarter months

Final Settlement Day

Third Wednesday of the Contract Month

Expiry Day

Two Trading Days prior to the Final Settlement Day

Trading Hours (Hong Kong Time)

8:30 a.m. to 6:30 p.m. (Trading hours on the Expiry Day are from 8:30 a.m. to 11:00 a.m.)

Exchange Fee

RMB 8 per contract

Exercise Fee

RMB 8 per contract

Commission Levy

Nil

Position Limit

For the USD/CNH Futures Contract, CNH/USD Futures Contract and USD/CNH Option Contract combined, a position delta of 8,000 long or short in all Contract Months combined provided that

- Position delta for the Spot Month USD/CNH Futures Contract and the Spot Month USD/CNH Option Contract combined during the five Trading Days up to and including the Expiry Day shall not exceed 2,000 long or short; and

- The position for CNH/USD Futures Contract shall not at any time exceed 16,000 net long or short contracts in all Contract Months combined

Large Open Positions

500 open contracts in any one series

Holiday Schedule

Follows the Hong Kong holiday schedule

Please click here for the disclaimer.

Margin Table

Market Makers or Liquidity Providers Information

Lists of Liquidity Providers in Futures Exchange Products

Currency Futures and Options Products

Providing Continuous Quotes
	Liquidity Providers
	CHI	GFF	JPM	KGI	NHT	SGS
USD/CNH Futures			#	#		#
Mini USD/CNH Futures			#	#	#	#
USD/CNH Options					#	#
EUR/CNH Futures
JPY/CNH Futures
AUD/CNH Futures
INR/CNH Futures
INR/USD Futures	#	#		#
CNH/USD Futures

# refers to a Futures Exchange Participant acting as a Liquidity Provider in Futures Exchange Products under the Cash Incentive Program

Lists of Market Makers for USD/CNH Futures

Name of Market Makers	Obligations
Bank of China (Hong Kong) Limited*	Provide continuous quotes
ICBC International Futures Limited	Provide continuous quotes
The Hong Kong & Shanghai Banking Corporation Limited^	Provide continuous quotes

* via UBS Derivatives Hong Kong Limited

^ via HSBC Broking Futures (Hong Kong) Limited

Additional Information on Cash Incentive Liquidity Providers

Market	Aggregate Market Share in July 2023^
USD/CNH Futures	11%
USD/CNH Options	50%
Mini USD/CNH Futures	60%
INR/USD Futures	26%

^aggregate market share of liquidity providers under the Cash Incentive Program in July 2023 (information last updated on 1 September 2023)

Updated 01 Sep 2023