28 Feb 2013
Bank of China (Hong Kong) Limited ("BOCHK") announced its designation as the market maker of the USD/ CNH (offshore RMB) futures for the Chicago Mercantile Exchange ("CME") Group and Hong Kong Futures Exchange from 25 February 2013, providing quotes for both CNH futures markets. BOCHK successfully completed the first CNH futures contracts transaction on the same day.
As the sole bank among the first group of market makers for the CME, BOCHK has been the leading market quotes provider accounting for 93.75% of the transactions on the first trading day, in addition to its completion of the first transaction. With the majority of the completed transactions in April and December futures contracts, they were executed through the CME platform before 5 pm (Hong Kong Time) as its trading hours overlap those of the CNH futures market of the Hong Kong Futures Exchange, which are the most active time zone for the offshore RMB market with higher market liquidity.
In addition, BOCHK has become the market maker to provide market quotes for the CNH futures of the Hong Kong Futures Exchange on the same day. It accounted for more than 24% of the transactions on the first trading day, higher than the average transaction volume of the other market makers.
Mr David Wong See Hong, Deputy Chief Executive of BOCHK, said, "The physically deliverable CNH futures contracts provide RMB investors with a low-risk and liquid hedging facility, contributing to the long-term and stable development of the offshore RMB market. The CNH futures trading launched respectively by the Hong Kong Futures Exchange and the CME will not only facilitate the growth of RMB business in both markets, but also creates synergy due to the overlapping of their trading hours. This will also benefit the CNH market as a whole."
Mr Wong added, "BOCHK is currently the only market maker in the world to provide market quotes of the CNH futures on both exchanges. As the sole Clearing Bank for the RMB business in Hong Kong, BOCHK endeavours to further promote the development of RMB business through continuous product innovation, with a commitment to meet the increasing needs of global customers for quality RMB services."
The two types of CNH futures contracts offered by the CME include the "standard contracts" and the "E-micro contracts". The notional value of each standard contract is USD100,000, available in 13 consecutive calendar months (Jan, Feb, Mar, Apr, May, Jun, Jul, Aug, Sep, Oct, Nov and Dec in the current year as well as Jan in the following year) and eight quarterly periods (3-year maturity range). The notional value of each E-Micro contract is USD10,000, available in 12 consecutive calendar months (Jan, Feb, Mar, Apr, May, Jun, Jul, Aug, Sep, Oct, Nov and Dec). On the other hand, each CNH futures contract offered by the Hong Kong Futures Exchange has a notional value of USD100,000, available in the current month, the following 3 calendar months and the 3 quarterly months (quarterly months in Mar, Jun, Sep and Dec).
The trading hours of the GLOBEX (ETH) platform are from 5 pm to 4 pm on the next day, Sundays to Fridays (Central Time, US). It closes at 4 pm on Fridays and reopens at 5 pm on Sundays. The trading hours of the Hong Kong Futures Exchange are from 9 am to 4:15 pm, Mondays to Fridays (Hong Kong Time).
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About Bank of China (Hong Kong) Limited
Bank of China (Hong Kong) Limited ("BOCHK"), established on 1 October 2001, is a leading listed commercial banking group in Hong Kong. With over 260 branches, 590 ATMs and other distribution channels in Hong Kong, BOCHK and its subsidiaries offer a comprehensive range of financial products and services to individual and corporate customers. BOCHK is one of the three note issuing banks in Hong Kong. In addition, the BOCHK Group (comprising BOCHK, Nanyang Commercial Bank and Chiyu Banking Corporation) and its subsidiaries have 38 branches and sub-branches in the Mainland of China to provide cross-border banking services to customers in Hong Kong and the Mainland. BOCHK is appointed by the People's Bank of China as the Clearing Bank for Renminbi business in Hong Kong. On 13 July 2010, BOCHK was authorised as the Clearing Bank of RMB banknotes business for the Taiwan region.
BOC Hong Kong (Holdings) Limited, BOCHK's holding company, began trading on the main board of the Stock Exchange of Hong Kong on 25 July 2002, with stock code "2388", ADR OTC Symbol "BHKLY".