Mon, Jan 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

CME launches yuan foreign exchange futures contracts

Monday, July 11, 2011

Roger Rutherford
The leading derivatives exchange, CME Group, has announced the launch of a new foreign exchange futures contract using the Chinese Yuan or Renminbi.

In a statement, CME said the move was prompted by the growing demand for yuan-denominated products across the globe. “These innovative new futures contracts will be quoted in interbank (European) terms, reflecting the number of CNY per US dollar. These futures products are aligned with the OTC market convention for non-deliverable forwards while providing the benefits of counterparty risk mitigation from exchange-traded derivatives,” the company said.

Roger Rutherford, Managing Director FX Products for CME Group commented: "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 our customers to more effectively manage their currency risk with the counterparty risk mitigation benefits of an exchange traded product.”

According to Rutherford, the launch of Yuan contracts demonstrates the exchange’s continued commitment to its global customer base by creating new products that are relevant to both mature and emerging markets. He added that these new contracts follow other emerging markets products such as Russian Ruble and Brazilian Real, which have seen year to date growth of 350% and 450% respectively.

“These significant increases in both volumes and open interest reflect increasing demand for credit risk mitigation in emerging markets products, and we believe that our new Yuan futures products provide these same benefits for customers managing their Yuan currency risk" he said.
Precy Dumlao

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised