Hong Kong Exchanges and Clearing Limited (HKEX) has received regulatory approval to introduce its planned cash-settled Euro-Renminbi (RMB), Japanese yen-RMB, Australian dollar-RMB and RMB-US dollar futures on Monday, 30 May 2016.
HKEX is following up on their plans to further enhance its RMB offering outlined in their 2015 review; coming on the back of achieving yearly record setting volume in contracts traded of the Chinese currency. Providing further momentum, back in February, Renminbi futures hit a record open interest high on the exchange.
The RMB-US dollar futures will trade in US dollars and the others will trade in RMB.
HKEX’s RMB currency futures provide the following benefits through a single electronic trading system:
- Hedging and risk management opportunities;
- Capital efficiency of exchange-traded futures;
- Block trade facility offers over-the-counter market flexibility with minimal counterparty risk;
- Dedicated liquidity providers to provide competitive bid-ask spreads; and
- Same Asian time zone for liquidity aggregation
Exchange Fees for the new futures will be waived for Futures Exchange Participants (FEPs) and their clients from the start of trading on the launch date until the close of afternoon trading on 30 November 2016.
In addition, HKEX is offering a joint promotion programme from 30 May to 30 November to help FEPs introduce the new products to their clients. The joint promotion programme includes trophies to be awarded to top programme participants, sponsorship of marketing activities and support on promotional materials.
For details, please see today’s RMB currency futures circular on the HKEX website.
For details on the new product contract specs click here.