Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — Investor Presentation (April 2021)
18 slides from Hong Kong Exchanges & Clearing's investor presentation, April 2021
Slide 1: Introduction of Mini USD/CNH Futures
Introduction of Mini USD/CNH Futures FIC Development, Markets Division April 2021
Slide 2: Disclaimer 免責聲明
Disclaimer 免責聲明 • The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to buy or sell any futures and options contracts or other products or to provide any investment advice or service of an
Slide 3: Agenda
Agenda 01 | HKEX’s Currency Derivatives Market Overview 02 | Trading of USD/CNH Futures 03 | Advantages of Exchange-traded USD/CNH Derivatives 04 | Features of Mini USD/CNH Futures
Slide 4: HKEX's Currency Derivatives Market Overview
HKEX’s Currency Derivatives Market Overview
Slide 5: HKEX's Currency Derivatives Products as Risk Management Tools
HKEX’s Currency Derivatives Products as Risk Management Tools Mainland Users International Users • Institutional investors holding RMB • Qualified Domestic Institutional assets Investors (QDII) Stock Connect • Qualified Foreign Institutional • Import/export companies Investors (QFII) • Commodities t
Slide 6: HKEX's Currency Futures Product Suite
HKEX’s Currency Futures Product Suite Expanding product suite and offering a number of unique products USD/CNH Futures Mini USD/CNH Futures USD/CNH Options The first physically First of Physically settled Cash settled delivered USD/CNH its kind Futures Notional USD 100,000 Notional USD 20,
Slide 7: Overview of HKEX's Currency Futures Product Suite
Overview of HKEX’s Currency Futures Product Suite Settlement RMB Currency Futures Contract size Contract month method 10 contracts months Physical USD 100,000 Spot, next 3 calendar months and next 6 calendar quarter months USD 10 contracts months Cash USD 20,000 Spot, next 3 calendar months and next
Slide 8: Trading of USD/CNH Futures
Trading of USD/CNH Futures
Slide 9: USD/CNH Futures: Growing since its debut in 2012
USD/CNH Futures Growing since its debut in 2012 Trading volume No. of contracts 2,000,000 1,500,000 1,000,000 500,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Record Highs Single-day Turnover Record Open Interest Record 24,345 Contracts T+1 Session Turnover Record 46,711 Contracts 11,747 Contr
Slide 10: USD/CNH Futures: Narrow bid-ask spread and active trading
USD/CNH Futures Narrow bid-ask spread and active trading across all tenors Bid-ask spread* Volume distribution by contract month^ 0.0016 Spot Month Next Month 0.0014 4th Quarter, 5th Quarter, 0.3% 0.1% 3rd Quarter, 0.7% 0.0012 2nd Quarter, 1.8% 1st Quarter, 0.0010 10.3% 0.0008 4th Month, 12.9% 1st M
Slide 11: Advantages of Exchange-traded USD/CNH Derivatives
Advantages of Exchange- traded USD/CNH Derivatives
Slide 12: Advantages of Exchange-traded USD/CNH Derivatives
Advantages of Exchange-traded USD/CNH Derivatives RMB OTC Derivatives HKEX USD/CNH Futures and Options Central clearing counterparty on both sides of Central Clearing Bilateral and no central clearing transactions Credit and Need to negotiate credit lines and collateral Margin-based and cash collate
Slide 13: Features of Mini USD/CNH Futures
Features of Mini USD/CNH Futures
Slide 14: Key Terms of Mini USD/CNH Futures
Key Terms of Mini USD/CNH Futures Items Mini USD/CNH Futures (Proposed) USD/CNH Futures (Existing) Contract Size USD 20,000 USD 100,000 Price Quotation RMB per USD (e.g. RMB 6.8418 per USD) Contract Months Spot, next 3 calendar months and next 6 calendar quarter months Settlement Method Cash settled
Slide 15: Features of Cash Settled Mini USD/CNH Futures
Features of Cash Settled Mini USD/CNH Futures Low minimum To meet demand from medium-sized corporates and retail investors; the minimum investment will be lower as the initial margin amount per contract required will be investment reduced to around RMB 2,000 No principal To meet demand from the inve
Slide 16: Product information on HKEX Website
Product information on HKEX Website HKEX homepage Product Page Our Products > Listed Derivatives > Foreign Exchange > Mini USD/CNH Futures For details of the launch of Mini USD/CNH Futures, please refer to the Circular MKD/FIC/001/21. 16
Slide 17: Product information on HKEX Website
Product information on HKEX Website Publications & Announcements Our Products > Listed Derivatives > Foreign Exchange > Publications & Announcements Click here for more details. 17
Slide 18: Thank you
Thank you Contact us: FICD@hkex.com.hk –––––
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