Singapore Pushes RMB Futures For The First Day Trading To Exceed 1 Billion Yuan

The Singapore Stock Exchange said in a statement yesterday that trading volume has exceeded 1 billion yuan in the first day trading of the new RMB futures contract in October 20th.

The statement also pointed out that in order to support the launch of the product, market participants deposited more than 1 billion yuan of cash as security collateral.

"Monday's deal was very active and received support from pool players from different counterparties.

Bank of China (601988, stock bar) Singapore Branch, DBS bank, ICBC (601398, stock bar) Singapore Branch, quantum investment management and Virtu finance are market makers and major participants in this futures contract paction.

The Singapore Stock Exchange said.

Singapore is Asia's largest foreign exchange market and the largest offshore RMB settlement center outside China.

With the recent increase of RMB exchange rate, the Singapore stock exchange can effectively hedge the risk of RMB exchange rate fluctuation by issuing this new RMB futures contract.

According to the data provided by the people's Bank of China, the real effective exchange rate of the RMB in the first half of 2014 has depreciated by 3.97%. This year's 3 - April devaluation is particularly volatile, and it did not begin to appreciate again until June.

On Monday, the Singapore Stock Exchange launched RMB futures contracts, including US dollar / offshore RMB futures and RMB to us dollar futures contracts, which were 100 thousand US dollars and 500 thousand RMB respectively.

It is reported that the two futures contracts do not have a daily price limit. The paction time is from 7:40 am to 6 p.m. in Singapore time, and 2 p.m. from 6:45 p.m. to the next morning. The size of the agreed bulk pactions is at least 20.

After the first day of listing, the Bank of China, Singapore Branch, first completed the first single electronic disk trading of RMB futures two contracts (CNH and CHY) and the first large OTC trading.

Prior to that, the Singapore Stock Exchange launched 6 foreign currency futures currency pairs in November 2013, allowing investors to manage their foreign exchange risks in combination with their exposure to the stock index of the new stock exchange.

The 6 currencies were Australian dollar to dollar, Australian dollar to Japanese yen, dollar to Singapore dollar, India rupee to us dollar, Korean won to us dollar and Korean won to Japanese yen respectively. Since its launch, the cumulative nominal paction value has exceeded US $7 billion.

Singapore is not the first to launch RMB futures exchanges.

As early as August 2006, the Chicago Mercantile Exchange (CME) launched the futures and options contracts for the renminbi against the US dollar, euro and yen.

The Hongkong exchange also launched RMB futures trading in September 17, 2012.

Statistics show that the Hong Kong Stock Exchange's current RMB futures contract is 100 thousand U.S. dollars (about HK $780 thousand) each, with a margin of only 15630 yuan, which is 2.5% of the contract value.

Yu Taishuo, director of customer development and fixed rate products and currency development at HKEx global market, said: "the demand for RMB foreign exchange products will only increase and the price pparency requirement will also increase. The HKEx will also launch RMB options and RMB futures contracts with a contract value of up to US $10 thousand in the future."

Yu Taishuo said that the Hong Kong Stock Exchange's RMB futures were not active at the initial stage of the launch, but with the increase of the RMB's fluctuation, the volume of trading of the HKEx futures contracts also increased sharply.

(a fortune)

The positive actions of neighboring overseas exchanges are forcing the domestic market. Many industry experts call for the early introduction of RMB futures and options.

Insiders pointed out that

The market environment where the exchange rate has entered a two-way fluctuation era is very similar to that of the US foreign exchange futures just 40 years ago.

From the perspective of marketization, China's marketization is even higher than that of the United States.

Therefore, from the perspective of market conditions, the reason for China's introduction of foreign exchange futures has been relatively adequate.

Some experts have suggested that foreign exchange futures instruments can increase management tools for foreign exchange reserves and achieve scientific management of international income.

"If the domestic market does not introduce RMB exchange rate derivatives in the domestic market, RMB will be delayed.

The leading power of pricing will be sidelined.

Guotai Junan Futures financial derivatives research institute director Wu Yang said.

At present, the risk of foreign exchange fluctuation is mainly dependent on OTC derivatives, such as foreign exchange forward sales, OTC options and foreign exchange swap agreements with banks.