Hong Kong Exchanges and Clearing Limited (HKEX) Mini USD/CNH Futures
The USD/CNH Futures, together with other RMB currency futures and options listed on HKEX, are widely traded and popular risk management tools for investors to manage their RMB exposures. Mini USD/CNH Futures complement these products, catering to the needs of some market participants who prefer cash settled contract and/or smaller contract size.
Mini USD/CNH (US dollar/Offshore Renminbi, or RMB) Futures contract are a smaller-sized contract to complement the popular USD/CNH derivatives products, further diversifying HKEX’s suite of currency derivatives to support the risk-management needs of global investors.
The contract size of Mini USD/CNH Futures is US$20,000, or one-fifth of the size of existing deliverable USD/CNH Futures offered by HKEX, allowing more precise hedging for market participants. The minimum investment will be lower than that of the existing deliverable USD/CNH Futures, as the required initial margin amount per contract will be reduced to around RMB2,000, subject to periodic adjustments.
HKEX launched the world’s first deliverable USD/CNH Futures contract in September 2012, and has seen strong growth in its turnover over the years, tracking the rising demand for RMB products. This contract is now one of the most actively-traded RMB futures contracts in the world, with open interest of 28,223 contracts (ie US$2.8 billion in notional amount) at the end of 2020, up 22 per cent from 2019.
Source: HKEX
Source: HKEX
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