HKEx Posts Weak Trading Metrics in January but RMB Futures Bump in Volumes

RMB Currency Futures achieved a steadfast level of growth, in contrast to its overall trading figures.

Hong Kong Exchanges and Clearing Limited (HKEx) has disclosed its market metrics for January 2017, which saw a weak performance across its securities and derivatives business, according to a HKEx statement.

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During the reported period, HKEx saw average daily turnover of futures and options coming in at 646,892 contracts, which was lower by 31 percent year-on-year from 941,648 contracts in January 2016.

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Average daily turnover at the operator of Hong Kong stock exchange was also lower by 30 percent for the first month of 2017 compared with the same period a year ago when extreme volatility in mainland Chinese markets drove strong volumes on the Hong Kong bourse. HKEx reported the figure at $57.2 billion compared to $82.2 billion in January 2016.

The exchange’s volumes didn’t benefit from increased trading volumes at the London Metals Exchange (LME) amidst lower trading turnover in its securities and derivatives market. As Finance Magnates reported in November 2016, revenue and other income dropped to $8.47 billion for Q3 2016 from $10.60 billion in Q3 2015, representing a fall of 20 percent compared to the prior period. However, after excluding exceptional gains of $514 million in Q3 2015, revenue and other income decreased by 16 percent.

Delving into specific product types and instruments, the exchange’s RMB Currency Futures reversed the narrative and achieved a steadfast level of growth, broadly higher than the extent of its overall trading figures. In particular, HKEx unveiled the turnover of RMB Currency Futures last month at 5,226 contracts, yielding an increase of 60 percent year-on-year from the last year record high of 3,264 contracts in 2016.

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