Hong Kong Exchanges and Clearing Limited (HKEX) USD/CNH Futures
The creation of the offshore Renminbi (CNH) was a significant milestone in China's effort to make its currency, the Renminbi, a global player. This move positioned the Renminbi to potentially become one of the world's primary reserve currencies.
The CNH market has experienced substantial and steady growth throughout this internationalization process. To further facilitate the management of risk in the expanding offshore Renminbi market, HKEX introduced USD/CNH futures in September 2012. This groundbreaking product is the world's first RMB-denominated currency futures contract, offering greater capital efficiency and flexibility for hedging exposure.
Key Benefits
- Offers optimal liquidity and market depth, especially during periods of market turbulence.
- The leverage inherent in futures margining can potentially magnify both profits and losses.
- Provides effective hedging and risk management tools.
- Block trades offer a streamlined way to execute large-scale transactions with minimal counterparty risk.
- Diverse investment horizon by offering a range of contract months with tenors up to 22 months, providing flexibility for various investment strategies.
- Physical delivery is available, making the product suitable for investors who prefer to transact in RMB.
- Trading hours cover some European and US business hours, offering broader market access.
- Flexible collateral policy for RMB margin requirements adds convenience for investors.
To find out more about HKEX USD/CNH Futures, contact us via:
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