HKEx Reports Solid Performance for RMB Derivatives

HKEx unveiled its average daily turnover of USD/CNH Futures in November 2020, which was 7,922 contracts, up 17% YoY.

Hong Kong Exchanges and Clearing Limited (HKEx) has disclosed its market metrics for November 2020, which saw strong performance across its securities and derivatives business, according to an HKEx statement.

During the reported period, HKEx saw average daily volumes of futures and options coming in at 1.14 million contracts, which was higher by 6 percent year-on-year from 1.08 million contracts in November 2019.

Meanwhile, the average daily turnover of stock futures in November 2020 was 5,571 contracts, an increase of 46 percent when compared with the 3,826 contracts for November 2019.

Delving into specific product types and instruments, the exchange’s RMB Currency Futures increased last month and remained broadly higher than the extent of its overall trading figures. In particular, HKEx unveiled its average daily turnover of USD/CNH Futures in November 2020 was 7,922 contracts. This is an increase of 17 percent when compared with the 6,760 contracts in the year prior.

Year-to-date, the average daily turnover of Stock Options at the operator of the Hong Kong Stock Exchange was 522,696 contracts, an increase of 17 percent relative to 447,252 contracts reported for the same period last year.

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HKEx Reinforces Position as Hub of Offshore Renminbi

Last year, the Hong Kong exchange solidified its position as a major hub for trading on offshore renminbi (CNH) and US dollar (USD) gold futures.

The exchange operator sees an opportunity as increasing regulatory scrutiny is raising costs for banks trading gold over the counter (OTC) in bilateral deals. Regulators are pushing for a more transparent, centrally-cleared model.

The instruments were designed to add another layer of gold trading, aiming for a chunk of the multi-billion dollar gold business and will include contracts for spot and monthly futures.

Hong Kong regulators have been actively improving their framework for regulating facilities that bring together multiple buyers and multiple sellers of over-the-counter (OTC) derivatives. Previous consultation papers proposed that OTC derivatives that meet certain criteria may be required to trade exclusively on such regulated facilities.

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