The move is part of an effort to position Hong Kong as the centre of offshore renminbi trading, as China continues its efforts to internationalize its currency. USDCNH futures will require delivery of dollars and payment of the final settlement value in renminbi by the buyer at maturity.
The futures will be margined in renminbi, with the trading and settlement fees charged in RMB. The final settlement price will be based on the spot USDCNY Hong Kong fixing published by the Treasury Markets Association on the last trading day of the contract.
On September 17, HKEx says the following contract months will be available for trading: October, November and December 2012; January, March, June and September 2013.
The exchange says there has been wide interest in the launch, with more than 1,000 investors attending briefings or seminars on the new futures contract.
“These new futures are part of our strategy to offer a wide range of renminbi-related products, and expand beyond equities and equity-related derivatives into fixed income, currencies and commodities,” says HKEx chief executive Charles Li.
“In addition, they will help us support renminbi internationalization and Hong Kong’s further development as an offshore renminbi centre.”