Tweaks to China's derivatives markets spawn new products

New renminbi currency options are unveiled and more news on the imminent launch of an OTC derivatives market maker system in China.

Banks in China have launched structured currency option products denominated in renminbi in the wake of the authorities taking a more accommodative regulatory stance on renminbi derivatives.

The products have been designed to provide Chinese exporters and importers with more sophisticated financial instruments to hedge currency risk against the backdrop of a more volatile renminbi this year.

Separately, China’s National Equities Exchange and Quotations (NEEQ), the country’s national OTC derivatives market, will officially launch its market maker system on 25 August.

On 9 August, NEEQ organised the second round of network testing, with all 81 sponsoring brokers participating. A further test will take place before launch date.

 

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