The group said these new futures contracts will be quoted in interbank (European) terms, reflecting the number of CNY per US dollar and are aligned with the OTC market convention for non-deliverable forwards while providing the benefits of counterparty risk mitigation from exchange-traded derivatives.
CME Group managing director FX Products Roger Rutherford said given the Yuan’s movement toward greater convertibility and the growing offshore trade of the currency in Hong Kong, CME Group has developed these innovative new (CNY) futures contracts to further enable its customers to more effectively manage their currency risk with the counterparty risk mitigation benefits of an exchange traded product.
In order to serve both the institutional as well as the retail market, CME Group said it will list both a full-sized USD/RMB (CNY) contract as well as an E-micro version.
The new currency products, which will be listed on and subject to the rules and regulations of CME, will launch 22 August for September 2011 settlement and will be allocated to the IMM (International Monetary Market) division.
These new contracts join CME Group’s existing RMB/USD futures contract, launched in June 2006, and are all traded on CME Globex as well as available for Blocks and EFPs via CME ClearPort.
