FXCM's Drew Niv Discusses The Potential Of The USD/CNH

“Meet The Experts” reached out to one of the industry’s most respected names in Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, Drew Niv, CEO of FXCM for an exclusive perspective about one of the most incendiary constructs in the finance industry, the CNH.

Indeed, the advent of a tradable CNH has become a source of growth for firms, namely in the South Asian locale. However as more and more traders look to expand into more currency pairs, demand for the CNH has swelled and seen its availability spike amongst brokers.

1. Do you feel CNH interest will continue to grow internationally? Is it likely to become offered more extensively in the future at FXCM?

FXCM started offering USD/CNH in 2012 to our Hong Kong clients and saw a demand around the world. We announced a couple months ago that we are now offering the USD/CNH pair on all of our platforms to all entities around the world (except for Japan).

2. Is FXCM’s launch of the USD/CNH a regional gambit or an attempt to satisfy a growing desire to trade the Chinese currency?

We feel that our global client base will now have the opportunity to trade their opinion on the world's second-largest economy, and a major influencer in international finance – China. We are excited to offer the USD/CNH across different platforms as this will allow clients to take advantage of growing international markets. FXCM is continuously working to diversify its product offering to the global trading community, and this is just another step.

3. Given an expansion of the trading band by the PBOC, greater exposure on exchanges, etc., do you feel popularity of the Renminbi is a short-term trend or long-term growth prospect for forex brokers?

45% of FXCM’s retail volume comes from Asia with 20% of that coming directly from China, so it remains an important region for us. As countries begin to liberalize, FXCM can benefit from large account sizes as capital controls are reduces and new currencies are made available for all to trade.