Hong Kong Exchanges and Clearing Limited (HKEx) will add deliverable RMB currency futures to after-hours trading in April. It will also introduce the fourth calendar quarter to the product’s existing contract months and add more calendar spreads.
Other trading, clearing and risk management measures for after-hours futures will apply similarly to RMB currency futures with the exception of a price limit of plus or minus 3 per cent of the last traded price of each RMB currency futures contract month during day trading. HKEx expects to name market makers for this activity shortly.
“We had record high RMB futures turnover on 25 February as well as record high open interest on February 14 and average daily volume nearly doubled last year from the first year, said Romnesh Lamba, HKEx’s co-head of global markets.“The product adds further value to Hong Kong’s attractiveness as an offshore RMB centre.”
HKEx has also revised the way it sets the plus or minus 5 per cent price limit for stock index futures in after-hours futures trading.The price limit set-up will better reflect the dividend discount and interest rate factors in the back month contract prices relative to the spot month price. HKEx says the move will provide a more effective range of price limits for the trading of back months.
After-hours trading, which runs from 5 pm to 11 pm Hong Kong time, is also available for block trading, Hang Seng index futures and H-shares index futures of both the mini and regular types.