Chinese Renminbi (CNH) Futures

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U.S. Dollar/Offshore Chinese Renminbi (CNH) futures
Exchange CME Group
Settlement Cash settled
Pricing Unit Need pricing unit!
Tick Value Standard Contract: 0.0001 RMB per USD (10 RMB); Calendar Spreads: 0.00005 RMB per USD (5 RMB)

E-micro Contract: 0.0001 RMB per USD (1 RMB)

Contract Months 13 consecutive calendar months plus 8 March quarterly months (3-year maturity range)
Last Trading Day Trading ceases at 11:00 am Hong Kong time, two Hong Kong business days immediately preceding 3rd Wednesday of contract month.
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A CME Globex

Sundays through Fridays: 5:00 pm - 4:00 pm (Chicago Time/CT) the next day. On Friday, CME Globex platform closes at 4:00 pm and reopens Sunday at 5:00 pm.

CME ClearPort

Sundays through Fridays: 5:00 pm - 4:15 pm CT the next day, with a 45 minute break each day beginning at 4:15 pm CT.

Ticker Symbol N/A N/A
Price Limits N/A N/A

Description

The Chinese Renminbi (RMB) Currency Futures refers to futures contracts based on the exchange rates between RMB and other currencies. HKEx's first RMB currency futures contract is based on the currency pair USD/CNH. CNH refers to the RMB circulated in Hong Kong.

The CNH futures contract is an Offshore Chinese Renminbi contract (USD/CNH) on CME Globex and CME ClearPort. It is available in standard size and E-micro size contracts. E-micro contracts are fungible with the standard contract. For example, a 10-contract long E-Micro position will offset 1 short standard contract if both positions are held in the same account. When combined with standard contracts, E-Micros can help customers create more accurate hedges by allowing customers to better manage tail risks.

Both Standard and E-Micro contracts feature physical delivery of Chinese Renminbi in Hong Kong. The USD/CNH contract differs from the existing USD/RMB (CNY) contract by being a physical delivery, offshore Chinese RMB contract quoted in Interbank terms, also known as the European quoting convention.

Benefits

The benefits of the USD/CNH futures are listed for the following:

Asset Managers - USD/CNH futures provide operationally simple and capital-efficient means to manage RMB risk for the diversified global fund manager.

Hedge Funds - USD/CNH futures offer unique arbitrage opportunities by enabling access to leverage in RMB markets.

Proprietary Traders - USD/CNH futures permit efficient and cost-effective trading in a currency product that is often associated with growth and success of the largest economy in Asia.

Banks and other Financial Institutions - USD/CNH futures are effective risk management tools for hedging bank FX exposures by specific trading positions or across an entire market portfolio.

Retail Investors - Retail investors all over the world can gain access and exposure to one of the fastest growing currency products in the world.


Resources

Understanding RMB Currency Futures Contract (USD/CNH) - Hong Kong Exchanges and Clearing Limited

CME Group U.S. Dollar/Offshore Chinese Renminbi (CNH) Futures Frequently Asked Questions

U.S. Dollar/Offshore Chinese Renminbi (CNH) futures Overview

CME Group to launch offshore yuan currency futures in the fourth quarter (Reuters)