(Yicai Global) Feb. 17 -- The Hong Kong Exchanges and Clearing Ltd. (HKEX) said it will launch its first yuan currency options in an important step to improve yuan-related derivatives.
HKEX will introduce its planned yuan currency options on March 20 this year, it said yesterday. The USD/CNH options will be the first currency options traded at HKEX.
The contract size of such options will be USD100,000 and the issue will be effectuated in the European-style. The exchange fee will be CNY8 per contract, which can be waived for the first six months starting from the trading day.
The eight contract months on the launch day will comprise April, May, June, July, September and December 2017, and March and June 2018
The new product will complement HKEX's dollar/yuan futures, which have been the world leaders in liquidity and distribution among exchanges over the last few years, and other yuan currency futures, the bourse said. HKEX accounts for about two-thirds of the open interest for all the world's exchange-traded dollar/yuan futures.