As RMB internationalisation progressed, HKEX launched RMB currency futures in 2012, and took another big step forward with the introduction of the USD/CNH options in 2017 to provide market participants with more choice of offshore RMB FX instruments.
HKEX's USD/CNH options are transparent and flexible RMB FX hedging tools. These exchange-traded contracts have a number of features, including standardised terms, long tenor coverage with competitive spreads, as well as physical delivery on exercise. Through various options strategies, market participants can effectively manage their FX risks.
(Note: the above hypothetical example is for illustration only)
HKEX's RMB currency derivatives are effective risk management tools to manage RMB exchange risk exposure, particularly during periods of volatility. Trading of USD/CNH options has seen rapid growth since Q3 2018. As of June 2019, the average trading volume was up 85% when compared with that of last year, while USD/CNH futures' single day trading volumes hit an all-time high of 24,345 contracts on 5 August 2019.
Check out the below video for more details about our USD/CNH options contract!