Bloomberg and HKEX Host Launch Event for HKEX’s USD/CNH Options

Bloomberg and Hong Kong Exchanges & Clearing Limited (“HKEX”) recently hosted a joint event to mark the launch of HKEX’s US dollar-offshore yuan (CNH) options, which are available on the Bloomberg terminal as of March 20^th, 2017.

The inclusion of the new USD/CNH options on the Bloomberg terminal is a further expansion of Bloomberg’s FX solutions, and serves to enhance market transparency, reduce risk and lower costs for users. A poll conducted at the event revealed that 60% of respondents are primarily using forward contracts to hedge RMB exposure. In addition, 67% of respondents felt the value of the RMB will sit between 6.90 and 7.10 by the end of the 2017.

Audience Poll at Bloomberg & HKEX Event

Jeffrey Leckstein, head of sales for Hong Kong, Taiwan and Korea for Bloomberg noted, “This product is being introduced at a time when China’s equity and bond markets are opening up to foreign investors and its currency continues to gain global prominence.” He added, “I’m excited to see these new contracts flow seamlessly into our system, where users already have access to a suite of world-class risk management tools on one single workflow.”

Since its inclusion in the International Monetary Fund’s SDR basket, the RMB continues to emerge as one of the world’s most important currencies. These newly introduced standardized USD/CNH options contracts by HKEX offer:

• Flexibility of trading and hedging strategies for various market conditions
• Limited counterparty risk, with HKEX acting as central clearing counterparty
• Transparency and efficiency of standardized exchange-traded contracts
• Cost effectiveness of trading on a margin basis
• Block trade facilities and tenor coverage up to 16 months

Julien Martin, HKEX’s Head of Fixed Income and Currencies Product Development, added, “These contracts cement Hong Kong’s role as a gateway for cross-border fund flows and as a risk management centre for the internationalization of the RMB. We certainly expect to launch similar RMB options for other currencies in the future.”

For more information on how to trade these US dollar-offshore yuan (CNH) options on Bloomberg and how we can help you meet your treasury needs, please contact us.