CME to Launch Options on RMB Futures
Posted by Colin Lambert. Last updated: March 6, 2023
CME Group has announced plans to launch options on its existing USD/offshore Chinese renminbi futures contracts on April 3, subject to regulatory approval.
“Offshore renminbi has become a core part of global FX trading and we’re delighted to offer these options contracts to help clients manage currency risk as China resets its economy during this period of reopening,” says Paul Houston, global head of FX products, CME Group. “Our options contracts will offer an attractive complement to the OTC market, with price discovery and anonymous trading on our all-to-all order book, as well as block trading for clients who might prefer the OTC-style of trading but stand to benefit from the efficiencies of a centrally cleared product.”
The plans have been welcomed by market participants, Adrian Averre, head of G10 FX flow options at BNP Paribas says, “This is an exciting and timely addition to the CME Group FX option product portfolio as USD/CNH options have become one of the most traded pairs in the OTC market. We look forward to being an active liquidity provider in the CME Group market.”
Meanwhile, Tim Brooks, head of FX options trading at Optiver, adds, “USD/CNH options provide market participants with a powerful tool for implementing sophisticated hedging and trading strategies around the world’s second largest economy. As a result of the Uncleared Margin Rules (UMR), more and more investors are exploring the listed options markets. By providing liquidity in USD/CNH products from launch, we look forward to enhancing the ability of market participants to seize opportunities and manage their risk with confidence.”