Trading RMB Futures in Hong Kong

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By Paul A. Ebeling, Jnr. | May 30, 2012 1:12 AM EST


Hong Kong Exchanges and Clearing Limited (HKEx) received approval from the Securities and Futures Commission Monday, to offer Renminbi (RMB) currency futures.

The plan is to be introduced in Q-3 of Y 2012 HKEx's RMB currency futures will be the 1st exchange-traded currency futures settled in RMB.

They will require delivery of US $'s (USD) by the seller and payment of the Final Settlement Value in RMB by the buyer at maturity.

Contracts will be quoted in RMB per USD and margined in RMB, with the trading and settlement fees charged in RMB. The final settlement price of the contracts will be based on the spot fixing published by the Treasury Market Association (TMA) at 11:15 am on the Last Trading Day.

HKEx has announced plans for a RMB readiness test on 30 June this year and Exchange Participants are strongly encouraged to join the test. The launch date of RMB currency futures will be announced in due course.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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