CME Group will now be able to offer offshore Chinese Renminbi (RMB) futures contracts in London for the first time.
The products will be listed CME Europe and will be supported by China Construction Bank (CCB) the People’s Bank of China’s designated clearing bank for RMB.
Established in April 2014 in London, CME Europe’s FX suite has initially struggled to gain traction and the exchange will hope that this partnership will boost the currency offering.
“The ability to transact during London hours is of paramount importance to those institutions who value flexibility in managing their positions in markets where prices can move sharply in short periods of time,” said William Knottenbelt, senior managing director and head of international at CME Group.
“CME Group and CCB have shared a strong desire to promote RMB liquidity in London and we are committed to building out the necessary infrastructure.”
The CME Group and CCB plan to liaise with the UK and Chinese authorities on the benefits of developing RMB products as well as to improve access for Chinese companies to international capital and the London markets.
By Paul Walsh, Staff Writer