Mini USD/CNH Futures to launch in the first half of 2021 with a contract size of US$20,000. The contract is offered in response to market demand from smaller corporations and individuals allowing for more precise risk management. This contract complements existing HKEX RMB currency products, such as USD/CNH Futures and USD/CNH Options.
“HKEX has been leading Hong Kong’s development as a global fixed-income and currency hub, and these currency derivatives products serve to underscore our commitment to further enhancing the breadth and attractiveness of our markets,” said HKEX Interim Chief Executive Calvin Tai.
“The new Mini USD/CNH Futures will expand HKEX’s Renminbi derivatives product suite, providing investors with an enhanced range of risk-management tools. Not only will this help them optimize their capital efficiency, but it will further support the continued internationalization of the Renminbi,” added Mr. Tai.
HKEX plans to launch the new Mini USD/CNH Futures in the first half of 2021, subject to market readiness.
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 (i.e. US$2.8 billion in notional amount) at the end of 2020, up 22 per cent from 2019.
HKEX has in recent years diversified its currency derivatives product offering with futures contracts on CNH currency pairs against the Japanese yen, Euro, and Australian dollar, USD-denominated CNH/USD Futures, USD/CNH Options, as well as futures on the Indian rupee against the USD and Offshore RMB.
Contract Specs are
- Price Quotation: RMB per USD
- Contract Size: US$20,000
- Contract Months: Spot, next 3 calendar months and next 6 calendar quarter months
- Settlement Method: Cash-settled in RMB
- Trading Hours: 8:30 a.m. – 4:30 p.m. (T Session) and 5:15 p.m. – 3:00 a.m. (T+1 Session)
