Taiwan Futures Exchange (TAIFEX ) officially announced today it’s plans to launch two RMB FX futures contracts, the USD/CNT FX futures (RTF) and the USD/CNH FX futures (RHF), by late July. In response to the fast increasing demand of RMB-denominated assets and the trend of the internationalization of RMB, TAIFEX is going to launch two USD/RMB FX futures to provide investors a standardized and leveraged risk management tool, and to promote the diverse development of the offshore RMB market in Taiwan.
USD/CNT FX futures (RTF) and USD/CNH FX futures (RHF) are with contract sizes of USD 20,000 and USD 100,000 respectively. For the final settlement price (FSP), the USD/CNT FX futures will use the spot USD/CNY(TW) fixing published by Taipei Foreign Exchange Market Development Foundation, while the USD/CNH FX futures will go for the spot USD/CNY(HK) fixing of the Treasury Markets Association of Hong Kong.
Trading hours for both contracts is from 08:45 to 16:15 and will cover the trading hours of Taiwanese interbank spot FX market. The launch date for both RMB FX futures is pending for regulatory approval.
The RMB FX futures could meet market demands, diversify TAIFEX product line and provide market participants, including but not limited to exporters/importers, banks, investors possessing RMB deposit or other RMB assets and foreign institutional investors an efficient trading and hedging tool.
For more info and official TAIFEX USD/RMB FX futures contract specifications, click here (PDF).