The Hong Kong Exchange (HKEx) has revealed it will release its long-awaited renminbi (RMB) currency futures on 17 September.
The world’s first deliverable RMB currency futures will be a USD vs RMB contract requiring delivery of USD by the seller and payment at maturity of the final settlement value in RMB by the buyer.
The futures will be quoted in RMB per USD and margined in RMB, with trading and settlement fees charged in RMB.
Final settlement price will be based on the spot USD/CNY in Hong Kong, published by the Treasury Markets Association.
On 17 September, contract months available for trading will include October 2012, November 2012, December 2012, January 2013, March 2013, June 2013 and September 2013.
Margin requirements and market makers will be announced before the launch date.
“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 Charles Li, CEO, HKEx. “In addition, they will help us support RMB internationalisation and Hong Kong’s further development as an offshore RMB centre.”
In recent months, HKEx has continued to ramp up its RMB offerings, including a July launch of the first renminbi qualified foreign institutional investor A-share exchange-traded fund on its domestic equity market.
“Although we do not have any volume or open interest targets, we see great long-term potential in RMB currency futures,” said Calvin Tai, head of trading, HKEx.