OREANDA-NEWS. Hong Kong Exchanges and Clearing Limited (HKEX) has received regulatory approval to introduce its planned cash-settled Euro-Renminbi (RMB), Japanese yen-RMB, Australian dollar-RMB and RMB-US dollar futures on Monday, 30 May 2016*.

The RMB-US dollar futures will trade in US dollars and the others will trade in RMB.  All key contract specifications are in the tables below.

HKEX's RMB currency futures provide the following benefits through a single electronic trading system.

  • Hedging and risk management opportunities;
  • Capital efficiency of exchange-traded futures;
  • Block trade facility offers over-the-counter market flexibility with minimal counterparty risk;
  • Dedicated liquidity providers to provide competitive bid-ask spreads; and
  • Same Asian time zone for liquidity aggregation

Exchange Fees for the new futures will be waived for Futures Exchange Participants (FEPs) and their clients from the start of trading on the launch date until the close of afternoon trading on 30 November 2016.

Key contract specifications 

Currency Pair

Euro (EUR)

Japanese yen (JPY)

Australian dollar (AUD)

Offshore RMB (CNH)

Contract Size

EUR 50,000

JPY 6,000,000

AUD 80,000

Contract Months

Spot month, the next calendar month and the next two calendar quarter months (calendar quarter months are March, June, September and December)

Price Quotation

RMB per EUR (eg, 7.3370)

RMB per 100 JPY (eg, 5.9420)

RMB per AUD (eg, 5.0400)

Minimum Fluctuation

RMB0.0001 (4 decimal places)

Trading Hours

9:00 am to 4:15 pm and 5:00 pm to 11:45 pm (after-hours trading)

Last Trading Day

Two Hong Kong Business Days prior to the third Wednesday of the Contract Month

Final Settlement Day

The first Hong Kong Business Day after the Last Trading Day

Final Settlement Price

A cross rate calculated from WM/Reuters Intraday Spot Rates1 at 11:00 am and TMA2 CNH Fixing published at 11:15 am

Settlement Method

Cash settled in RMB

Commission Levy

Nil

Exchange Fee

RMB5 per contract per side
Waived from 30 May – 30 November 2016, excluding after-hours trading on 30 November

 

Currency Pair

Offshore RMB (CNH), US dollar (USD)

Contract Size

RMB300,000

Contract Months

Spot month, the next three calendar months and the next four calendar quarter months (calendar quarter months are March, June, September and December)

Price Quotation

USD per 10 RMB  (eg, 1.5424)

Minimum Fluctuation

USD0.0001 (4 decimal places)

Trading Hours

9:00 am to 4:15 pm and 5:00 pm to 11:45 pm (after-hours trading)

Last Trading Day

Two Hong Kong Business Days prior to the third Wednesday of the Contract Month

Final Settlement Day

The first Hong Kong Business Day after the Last Trading Day

Final Settlement Price

A reciprocal of TMA2 CNH Fixing published at 11:15am, multiplied by 10

Settlement Method

Cash settled in USD

Commission Levy

Nil

Exchange Fee

USD0.6 per contract per side
Waived from 30 May to 30 November 2016, excluding after-hours trading on 30 November
1 The WM/Reuters Intraday Spot Rates are provided by the World Markets Company plc, or WM, in conjunction with Reuters.
2 Hong Kong's Treasury Markets Association