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TAIFEX to launch the RMB FX futures

First Published 3rd July 2015

Taiwan Futures Exchange plans to launch two RMB FX futures contracts, the USD/CNT FX futures and the USD/CNH FX futures by late July.

In response to the increasing RMB-denominatedasset and the trend of the internationalization of RMB, TAIFEX is to launch two USD/RMB FX futures to provide investors with a standardized and leveraged risk management tool, and to promote the diverse development of the offshore RMB market in Taiwan.

USD/CNT FX futures (RTF) and USD/CNH FX futures (RHF) are with contract sizes of USD 20,000 and USD 100,000 respectively. For the final settlement price (FSP), the USD/CNT FX futures will use the spot USD/CNY(TW) fixing published by Taipei Foreign Exchange Market Development Foundation, while the USD/CNH FX futures will go for the spot USD/CNY(HK) fixing of the Treasury Markets Association of Hong Kong. Trading hours for both contracts is from 08:45 to 16:15 and will cover the trading hours of Taiwanese interbank spot FX market.

The launch date for both RMB FX futures is pending regulatory approval.