Published On: Thu, Aug 23rd, 2012

HKEx to Introduce RMB Currency Futures on 17 September

Charles Li CEO HKEx

Charles Li CEO HKEx

Hong Kong Exchanges and Clearing Limited (HKEx) will introduce renminbi (RMB) currency futures on 17 September. The US Dollar vs Renminbi (Hong Kong) or USD/CNH* Futures contract will be the world’s first deliverable RMB Currency Futures.

USD/CNH Futures will require delivery of USD by the seller and payment of the Final Settlement Value in RMB by the buyer at maturity. The futures will be quoted in RMB per USD (for example, RMB 6.2486 per USD) and margined in RMB, with the trading and settlement fees charged in RMB. The final settlement price will be based on the spot USD/CNY(HK) fixing published by the Treasury Markets Association (TMA) at 11:15 am on the Last Trading Day (the fixing is available on TMA’s website).

The following contract months will be available for trading on 17 September: October 2012, November 2012, December 2012, January 2013, March 2013, June 2013 and September 2013. Details of the contract specifications and a list of information vendor codes for USD/CNH Futures are attached below (they will also be available on the HKEx website). Margin requirements and market makers will be announced before the launch date.

So far, more than 1,000 market practitioners and investment professionals have attended a seminar or briefing on the new futures and more events are planned.

“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 HKEx Chief Executive Charles Li. “In addition, they will help us support RMB internationalisation and Hong Kong’s further development as an offshore RMB centre.”

“Although we do not have any volume or open interest targets, we see great long-term potential in RMB currency futures,” said Calvin Tai, HKEx’s Head of Trading.

* USD – US dollar; CNH – Renminbi traded in Hong Kong.

Contract Size USD100,000
Contract Months Spot month, the next three calendar months and the next three calendar quarter months (i.e. quarter months are March, June, September and December).  The Chief Executive may, in consultation with the Commission, introduce additional Contract Months for trading from time to time as he considers appropriate.
Price Quotation RMB per USD (e.g. RMB 6.2486 per USD)
Minimum Fluctuation RMB 0.0001 (4 decimal places)
Tick Value RMB 10
Contracted Price The price at which a USD/CNH Futures Contract is registered by the Clearing House
Contracted Value Contracted Price multiplied by the Contract Size (e.g. RMB 6.2486 x 100,000)
Trading Hours 9:00 am – 4:15 pm (Hong Kong time)

There is no trading after 12:00 noon on the eves of Christmas, New Year and Lunar New Year.  The trading hours on those three days shall be 9:00 am – 12:00 noon (Hong Kong time)

Trading Hours on
the Last Trading Day
9:00 am – 11:00 am (Hong Kong time)
Trading Method The Exchange’s Automated Trading System (HKATS)
Position Limits 8,000 net contracts in all Contract Months combined and no more than 2,000 open contracts in the Spot Month Contract during the five Hong Kong Business Days up to and including the Last Trading Day per Exchange Participant for the Exchange Participant’s own behalf; and

8,000 net contracts in all Contract Months combined and no more than 2,000 open contracts in the Spot Month Contract during the five Hong Kong Business Days up to and including the Last Trading Day, per Client

Large Open Positions 500 open contracts, in any one Contract Month, per Exchange Participant for the Exchange Participant’s own behalf; and

500 open contracts, in any one Contract Month, per Client

Settlement Method Delivery of US dollars by the Seller and payment of the Final Settlement Value in RMB by the Buyer in accordance with the mechanism and provisions set forth in the Regulations for trading Currency Futures Contracts and the Clearing House Rules
Final Settlement Value Contract Size x Final Settlement Price
Final Settlement Day The third (3rd) Wednesday of the Contract Month.  If it is not a Hong Kong Business Day, the Final Settlement Day shall be the next Hong Kong Business Day
Last Trading Day The Last Trading Day of a Contract shall be two Hong Kong Business Days prior to the Final Settlement Day
Final Settlement Price Spot USD/CNY(HK) fixing published by the Hong Kong Treasury Markets Association* at 11:15 am on the Last Trading Day
Trading Fee
(per contract per side)
Exchange Fee (in RMB)                                 RMB 8.00

The amount indicated above is subject to change from time to time

Levies
(per contract per side)
Investor Compensation Levy are payable at the rate or of the amount prescribed from time to time pursuant to the Securities and Futures Ordinance
Commission Rate Negotiable

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