After broadening its Brazilian offerings, the CME is upgrading its Chinese Renminbi product line by adding deliverable futures to go along with its existing NDF. According to the CME, the creation of the product is based on the rapid rise of both on and offshore deposit volumes of renminbi as the currency has become more readily used in business transactions. The new futures are expected to launch in Q2 2013.
CME Group Expands its Global FX Product Offering with Addition of Chinese Deliverable Renminbi (CNH)
CHICAGO and HONG KONG, Sept. 12, 2012 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace and operator of the largest regulated FX market in the world, announced today that it is expanding its overall suite of Chinese Renminbi products to include Deliverable Renminbi (CNH) futures. These products will be launched in the coming months and will be allocated to the IMM (International Monetary Market) Division. CNH futures will be listed on and subject to the rules and regulations of CME.
“The Renminbi market has grown significantly during the past two years, and is highly active both during as well as outside of Asian trading hours. As the Renminbi continues to internationalize, it will become increasingly important to provide global access to these products,” said Derek Sammann, CME Group Senior Managing Director, Interest Rates and FX Products. “Leveraging CME Group’s leadership position in the global FX markets and through the distribution of CME Globex in more than 85 countries to our diversified client base that includes hedge funds, asset managers, banks and corporate accounts, we are best positioned to further internationalize the offshore Renminbi (CNH) currency.”
CNH Futures will expand CME Group’s overall Chinese Renminbi product suite that currently includes both cash-settled CNY futures as well as clearing for OTC Non-Deliverable Forward (NDF) products in USD/CNY. Contract specifications for the new CNH futures products include the following:
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• As with the existing standard USD/CNY product, CNH will be available in standard size with tenor out to three years, allowing for more flexible hedging and trading, and in E-micro size with tenor out to 1 year;
• CNH Physical Delivery will be made in Hong Kong. Investors will be able to trade on both Intra (Calendar) commodity spread of CNH and the Inter commodity spreads between CNH and CNY products; and
• CME Group plans to dually list CNH and CNY products on both CME and, pending regulatory approval, CME Europe Ltd.
As the world’s largest regulated FX marketplace, CME Group offers a full product suite of 56 futures and 31 options contracts reflecting an average daily notional value of US$110 billion in 2012. In addition, the company provides OTC clearing services for 12 OTC Non-Deliverable Forward currency pairs as well as 26 Cash Settled Forwards.
As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based oninterest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operatesCME Clearing, one of the world’s leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
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SOURCE CME Group