By Simon Miller
Hong Kong Exchanges and Clearing (HKEx) is to introduce the world's first deliverable renminbi (RMB) currency futures on 17 September.
The Dollar vs Renminbi (Hong Kong) ($/CNH) Futures contract will be the world’s first deliverable RMB Currency Futures and will require delivery of dollars 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 dollar and margined in RMB, with the trading and settlement fees charged in RMB.
The final settlement price will be based on the spot $/CNY(HK) fixing published by the Treasury Markets Association at 11:15 am on the last trading day.
"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," added Calvin Tai, HKEx’s head of trading.
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. Margin requirements and market makers will be announced before the launch date.