HKEx Reports Mixed Performance for RMB Derivatives

The exchange’s RMB Currency Futures slowed last month, but remains broadly higher than the extent of its overall trading figures

Hong Kong Exchanges and Clearing Limited (HKEx) has disclosed its market metrics for September 2019, which saw a mixed 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 940,040 contracts, which was lower by -22 percent month-on-month from 1.2 million contracts in August 2019.

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Meanwhile, the average daily turnover of stock futures in September 2019 was 4,075 contracts, an increase of 60 percent when compared with the 2,551 contracts for September 2018.

Delving into specific product types and instruments, the exchange’s RMB Currency Futures slowed last month but remained broadly higher than the extent of its overall trading figures. In particular, HKEx unveiled its average daily turnover of RMB Currency Futures in September 2019 was 26,774 contracts, lower five percent when compared with the 28,191 contracts in the month prior.

Year-to-date, the average daily turnover of the Chinese currency futures at the operator of the Hong Kong stock exchange was 8,726 contracts, an increase of 17 percent relative to 7,436 contracts reported for the same period last year.

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HKEx drops its offer to buy London bourse

Hong Kong exchange recently 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.

Earlier today, HKEx dropped its $39 billion bid for the London Stock Exchange Group (LSE), as Hong Kong’s bourse apparently failed to convince shareholders about the merits of a higher takeover offer.

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