HKEX schedules launch of Mini USD/CNH futures for April 26, 2021
Hong Kong Exchanges and Clearing Limited (HKEX) today scheduled the launch of the Mini USD/CNH Futures Contract for April 26, 2021.
The start of trading of the contract is set for the T session (8:30 a.m. – 4:30 p.m.) on April 26, 2021.
HKEX first announced its plans to launch a cash-settled Mini USD/CNH (US dollar/Offshore Renminbi, or RMB) Futures contract in January 2021. This smaller-sized contract will complement the popular USD/CNH derivatives products, further diversifying HKEX’s suite of currency derivatives to support the risk-management needs of global investors.
The Mini USD/CNH Futures contract responds to demand from market participants, particularly medium-sized corporates and individuals, for cash-settled and smaller-sized contracts, helping investors to hedge the RMB currency risk of their positions in different assets, such as equities and commodities.
The contract size of Mini USD/CNH Futures is US$20,000, or one-fifth of the size of existing deliverable USD/CNH Futures offered by HKEX, allowing more precise hedging for market participants. The minimum investment will be lower than that of the existing deliverable USD/CNH Futures, as the required initial margin amount per contract will be reduced to around RMB2,000, subject to periodic adjustments.
HKEX launched the world’s first deliverable USD/CNH Futures contract in September 2012, and has seen strong growth in its turnover over the years, tracking the rising demand for RMB products.