Chinese Renminbi (CNH) Futures

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Chinese Renminbi (CNH) Futures
Contract Unit 1,000,000 Chinese renminbi
Trading hours CME Globex Sunday - Friday 5:00 p.m. - 4:00 p.m/ CT with a 6--minute break each day
beginning at 4:00p.m. CT
CME Clearport Sundsay5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday -
Thursday 5:45 p.m. - 6:00 p.m. CT
Minimum price fluctuation Outrights: 0.00001 per Chinese renminbi = $10.00
Intra-currency spreads: 0.000005 per Chinese renminbi = $5.00
Product code CME Globex: RMB
CME ClearPort: RMB
Clearing: RMB
Listed contracts Monthly contracts listed for 13 consecutive months and quarterly contracts (Mar, Jun, Sep
& Dec) listed for 8 consecutive quarters
Settlement method Financially Settled
Termination of trading Trading terminates at 9:00 a.m. Beijing time on the second Beijing day prior to the third Wednesday of the contract month
(7:00 p.m. CT on Sunday during the winter and 8:00 p.m. Ct in Sunday during the summer).
Settlement procedures RMB/USD Futures Settlement Procedures
Position limits CME Position Limits
Exchange rulebook CME 270
Block minimum Block Minimum Thresholds
Price limit or circuit Price Limits
Vendor codes Quote Vendor Symbols Listing
Chinese Renminbi (CNH) Options
Contract Unit One futures contract for 1,000,000 Chinese renminbi
Minimum Price Fluctuation $.00001 per Chinese renminbi increments ($10.00/contract). Also, trades may occur at $.000005, ($5), $.000015 ($15), $.000025 ($25), .000035 ($35), .000045 ($45), when price is below five ticks of premium.
Trading Hours CME Globex: Sunday 5:00 p.m. - Friday - 4:00 p.m. CT with a 60-minute break each day beginning at 4:00 p.m. CT
CME CLearport: Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
Product Code CME Globex: RMB

CME ClearPort: RMB

Clearing: RMB

Listed Contracts Twelve consecutive months
Settlement Procedures Option on cash-settled futures contract
Termination of Trading At the same date and time as the underlying futures contract. Trading ceases at 9:00 a.m. Beijing time* on the second Beijing business day immediately preceding the third Wednesday of the contract month (i.e., In Chicago, 7:00 p.m. CT on Sunday night during the winter and 8:00 p.m. CT on Sunday night during the summer).
Position Limits CME Position Limits
Exchange Rulebook CME 270A
Block Minimum Block Minimum Thresholds
Price Limit or Circuit Price Limits
Vendor Codes Quote Vendor Symbols Listing
Exercise Style European
Settlement Method Deliverable
Underlying Chinese Renminbi/USD Futures

Description[edit]

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[edit]

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[edit]

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)

Chinese Renminbi/USD Futures - Contract Specs