HKEx extends incentives for RMB Currency Futures

HONG KONG - Hong Kong Exchanges and Clearing Limited (HKEx) is extending incentives to solidify development of its RMB currency futures market, which it says continues to serve as an effective risk management tool in periods of unexpected USD/CNH volatility.

The HKeX Active Trader Programme introduced at the beginning of this year has been extended until the end of 2016. The programme provides certain trading fee rebates to a limited number of traders subject to minimum volume thresholds.

“As an international financial centre adjacent to Mainland China, Hong Kong is ideally positioned as the premier RMB risk management centre,” says Romnesh Lamba, HKEx’s Co-head of Global Markets. “Average daily RMB currency futures volume has increased each year since launch in 2012.”

Turnover in HKEx's RMB currency futures contracts reached an all-time high of 8,061 contracts (notional value of US$806 million) on 12 August 2015. On an annual basis, the product reached a record turnover of 254,646 contracts (notional value of US$25.5 billion) from  January 1, 2015 to December 24, 2015, exceeding the full-year record of 205,049 contracts (notional value of US$20.5 billion) in 2014.

The open interest also continued to grow, having reached 21,072 contracts (notional value of US$2.1 billion) as of December 24, 2015, the highest in 22 months.  www.hkexgroup.com (ATI).