Hong Kong’s HKEX Improves Trading Conditions for RMB Currency Futures

RMB Currency Futures traded at Hong Kong Exchanges and Clearing Limited (HKEx) are scheduled for enhancements to upgrade their accessibility and functionality, as well as providing greater over-the-counter flexibility, according to a bourse announcement.

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The HKEX today revealed three improvements to its Renminbi (RMB) Currency Futures, which includes USD/CNH, EUR/CNH, JPY/CNH, AUD/CNH and CNH/USD futures.

RMB futures were introduced to meet increasing demand in the region for Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and cross-currency hedging tools. The move was also aimed at expanding the Hong Kong bourse futures market as the country has signaled its ambition to become an offshore yuan trading canter.

The first batch of changes concerns trading hours of RMB Currency Futures with HKEX extending the day and after-hours trading by half an hour and an hour and a quarter respectively, effective July 10, 2017.

Hong Kong’s bourse operator has also introduced a second tier to the market maker program for HKEx’s RMB Currency Futures, the world’s first deliverable RMB currency futures. Specifically, the program will comprise primary and secondary Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term. HKEX noted that it welcomes new applications to join its market making program.

Finally, HKEX has extended its fee waiver for cash-settled RMB Currency Futures (EUR/CNH, JPY/CNH, AUD/CNH and CNH/USD futures) to the end of this year.

Finance Magnates reported yesterday on HKEX’s trading metrics for May 2017 which showed a bump across its securities and derivatives business. According to the exchange’s circular, RMB Currency Futures achieved a steadfast level of growth, broadly higher than the extent of its overall trading figures. In particular, HKEx unveiled its average daily turnover of RMB Currency Futures for the first five months of 2017 at 3,061 contracts, an increase of 31 percent year-on-year from the last year record of 2,335 contracts in 2016.

Earlier in March, renminbi currency options through a USD/CNH contract was launched to complement HKEX’s RMB product suite. The new contract is a follow-up to forex products launched by the HKEX in recent months, including USD/CNH futures and other RMB currency futures.