Thomson Reuters Opens up Forwards Trading for Offshore Yuan Market
Thomson Reuters has expanded its offering for the offshore Yuan (CNH) market with the launch of FX swap CNH trading on Thomson Reuters Matching. This is the first time CNH forwards trading has been made available via an interbank electronic marketplace.
The new service complements the existing FX spot CNH service launched by Thomson Reuters last year and is available to existing Thomson Reuters Matching subscribers with the required clearing facilities in place. Currently this includes over 80 global financial institutions.
Two of the largest financial institutions from London and Hong Kong, both significant stakeholders in the offshore Yuan market, conducted their first CNH swap trades on Thomson Reuters Matching on the July 25 2011 launch day.
Mark Kiley Global Head of Sales, Treasury Transactions Services, said: “With the average daily CNH trading volume now more than US$1 billion, interest in the offshore Yuan market has been really phenomenal. The launch of FX swaps for offshore Yuan is a natural progression for us and meets great demand from our CNH customers. Our FX spot service has been quickly adopted by the CNH trading community with strong growth, both in terms of liquidity and trading volumes. Along with the provision of the CNH fixing, the spot and swaps trading capabilities enable customers to quickly access real liquidity and manage ever growing customer flows and interest.”
The addition of CNH forwards trading to Thomson Reuters Matching further expands the Company’s growing services to support the offshore Yuan market. It follows Hong Kong’s Treasury Market Association’s (TMA) recent appointment of Thomson Reuters to compile and publish Hong Kong’s first offshore Yuan spot fixing rate.
In 2010, trades settled in Chinese Yuan and handled by banks in Hong Kong amounted to 369 billion Yuan (US$57 billion), equivalent to 73 percent of mainland China’s total trade in Chinese Yuan. In the first quarter of 2011, this ratio surged a staggering 86 percent, according to the Hong Kong Monetary Authority.