Skip to main content
RSS Feed

Articles tagged by CNH

Icap Launches CNH Benchmark EBS BrokerTec and Icap Information Services (IIS) have launched EBS CNH Benchmark, the first fully electronic, trade-backed reference rate for the offshore Chinese renminbi (CNH) market, according to Icap. The benchmark is published daily at 16:30 Beijing/8:30 GMT, and is timed ...
HKEX Subsidiary Gets Approval for Cross Currency Swaps Clearing OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), has received regulatory approval to clear cross currency swaps. Following the approval, granted by the Securities and Futures Commission, OTC Clear says that ...
Chinese RMB Not a Safe Haven Currency, Study Finds The Chinese offshore convertible renminbi cannot currently be considered a safe haven currency, and neither does it appear to be on the path of becoming one, a study published by the Federal Reserve Bank of Dallas suggests. The study analyses ...
EBS Volumes up 1% YoY in July, but Fall 15% MoM ICAP’s EBS average daily volumes (ADV) were up 1% year on year in July, standing at $83 billion. Nevertheless, volumes saw a sharp drop on a month on month basis in July, being down by 15% compared to June, ICAP reports. The ...
OTC Clear Claims First in USD/CNH Swaps Clearing OTC Clearing Hong Kong (OTC Clear) has launched a clearing service for cross-currency swaps (CCS), which will initially focus on swaps in the USD/CNH currency pair. OTC Clear is the first international clearing house to provide clearing for USD/...
Playing the Long Game in China Despite a bearish outlook on China and its currency right now, panellists at Profit & Loss Shanghai claimed that in the long-term, the fundamentals are in place for RMB development. While China’s economy continues to enjoy growth rates that most fully developed economies could only dream of, the slowing of this growth rate has led to negative sentiment about China from some international investors. “The perception outside of China about China’s economic rebalancing is very critical right now,” said Ivan Shi, a director at Z-Ben Advisors.
RMB Internationalisation: Opportunities and Challenges Celent has released a report today that documents the progress being made in the internationalisation of the renminbi (RMB), and outlines the opportunities that this represents for market participants, as well as the challenges it presents. Discussing how investment managers can benefit from RMB internationalisation, the report says that they should consider adopting new strategies to respond to greater short-term volatility in the currency. It notes that investment managers have traditionally looked to gain from China’s one-way currency appreciation and hold bonds till maturity. “But Chinese regulators’ abandonment of circuit breakers and other protective measures means traditional expectations of regulatory intervention may not hold going forward, opening up more opportunities for short-term price fluctuations,” says the report.
SGX Touts 74% YoY FX Futures Growth SGX has released data showing that the total volume of its FX futures contracts grew 74% year-on-year to 759,983 contracts in July, and open interest in these contracts was up 15% YoY to 60,105 contracts as at the end of July. The renminbi continued to strengthen against the US dollar in July, extending a trend from the previous month. However, the USD/CNH spot market traded in a narrow range resulting in low volatility that also affected overall volumes for USD/CNH futures across various exchanges. While the total exchange-traded USD/CNH futures contracts traded globally fell 12% month-on-month in July, the volume for SGX’s USD/CNH futures in the month fell by 7.7% to 150,567 contracts.
Sustaining the Momentum Since launching its initial suite of FX products four years ago, SGX has reported consistent growth in this business segment. But can the exchange sustain the momentum going forward? Galen Stops takes a look. Back in November 2013, Singapore Exchange (SGX) went live with trading for six deliverable and non-deliverable currency pairs: AUD/USD, AUD/JPY, USD/SGD, INR/USD, KRW/USD and KRW/JPY. As Profit & Loss noted at the time, the aim was clearly to establish SGX as the major hub for Asian currency futures trading. Fast forward four years and it appears that the exchange is well on its way to achieving this ambition, with the star performers in its FX suite being the INR/USD and USD/CNH contracts, the latter of which was launched in 2014.