US dollar against offshore RMB Futures Contract
1. Why did APEX launch the USD-CNH Futures Contract?
With the acceleration of the internationalization of the Renminbi (RMB), the international status of the RMB has been on the rise. The RMB is widely used in global trade and investment, and increasingly becoming one of the important international reserve currencies.
The pace of reform of the RMB exchange rate regime is gaining momentum at the same time with greater international trade flows, resulting in trends of higher volatility and increased fluctuation in both directions of the exchange rate.
Source: Wind Financial
Note: USD/CNH exchange rate for the past two years
2. Why trade APEX UC Contract?
a) Weekly contract formation: flexible for different investment and hedging time horizon
As the world’s first weekly USD/CNH contract, the UC Contract will list “four nearest weekly contracts + next three monthly contracts + next three quarterly contracts”, on a rolling basis, meeting the needs of clients with different investment and hedging time horizons.
Example based on 2019 Contract series
b) Smaller Contract Size: customizable for different investment and hedging exposure
The UC Contract will be sized at US$10,000 per lot. The small contract size is expected to be more liquid than larger sized contracts and will be more customizable to fulfill the needs of clients’ with different hedging and investment requirements.
c) Cash Settlement: convenient and economical
The contract’s final settlement price is based on the USD/CNH spot rate published by the Treasury Markets Association (TMA) on the last trading day (LTD). Cash settlement has the benefit of requiring low cash outlay at the expiry of the contract. Clients only need to settle the profit and loss, which is economical on capital and convenient.
Why is the Final Settlement Price based on TMA USD/CNH spot rate?
Treasury Markets Association (TMA)’s USD/CNH (Hong Kong) spot exchange rate is the authoritative benchmark for the offshore RMB spot rate and is the widely accepted benchmark for settlement by many major global exchanges.
Note: Derivation of TMA spot exchange rate
3. How to access APEX market information and data?
Access APEX market data through the following software vendors:
Esunny, Thomson Reuters, Bloomberg, WIND Financial Terminal, Webstock myTrader and Pobo5. For more information on how to access the market data, please visit APEX Investor Guide.
4. How to trade the APEX UC Contract?
Trade APEX products including UC and Palm Olein contracts through our 6 clearing members: Phillip Futures, KGI Securities (Singapore), HGNH International Financial (Singapore), DA Financial Service (s), Straits Financial Services, UOB Kay Hian Private Limited. For more information, please check our list of Clearing Members.
5. Getting Started
APEX USD/CNH Futures Contract Specifications
A Contract is denoted as UCyymmW#, where “yy”, “mm” and “W#” refer to the year, month and the ordinal week of that month on which the Contract shall expire. For symbology purposes, the first week of a month is the first week of that month with a Wednesday.
e.g. UC1901W3 refers to a Contract that is to expire on the third week of January 2019.
CNH per USD
Minimum Price Fluctuation
CNH 0.0001 (4 decimal places)
The Exchange shall list 4 Contracts which shall expire in the next 4 near-term consecutive weeks, followed by another 3 Contracts which shall expire in the third week of each of the next 3 consecutive months, followed by another 3 Contracts which shall expire in the third week of each of the next 3 quarterly months (March, June, September and December).
Upon the expiration of a Contract, the Exchange shall list a new Contract for trading by the beginning of the next Trading Day.
Singapore time trading sessions:
Monday – Friday, including Singapore Public Holidays (except New Year’s Day Public Holiday)
06:55am - 06:59am (Pre-opening session of Day Session) 06:59am - 07:00am (Opening match session of Day Session) 07:00am - 18:00pm (Day Session/2nd Trading Session) T+1 Sessions
19:25pm - 19:29pm (Pre-opening session of Night Session) 19:29pm - 19:30pm (Opening match session of Night Session) 19:30pm - 05:00am (Night Session/1st Trading Session) Trading of a Contract shall cease at 11:00am on its Last Trading Day.
Last Trading Day
The Last Trading Day of a Contract shall be the Monday of that Contract Week if it is a Hong Kong Business Day, otherwise the next Hong Kong Business Day. Notwithstanding the above, the Exchange reserves the right to determine the Last Trading Day with notice.
Daily Price Limits
Unless otherwise prescribed by the Exchange, there shall be no daily price limits.
Daily Settlement Price
The Daily Settlement Price of a given day shall be the volume-weighted average of the traded prices of all transactions occurred during the last 5 minutes of the given day's Day Session, or other methodology as set forth by the Clearing House.
Final Settlement Price
The Final Settlement Price shall be equal to USD/CNY(HK) Spot Rate published by the Treasury Markets Association of Hong Kong (TMA) at approximately 11:30am Hong Kong time on the Last Trading Day, or other methodology as set forth by the Clearing House.
Cash settlement in CNH
Minimum 200 lots
Based on SPAN®
Maximum Order Size
Futures trading may have complex features and risks which can expose an investor to various factors, including the incurring of losses. Hence, futures trading may not be suitable for everyone. Futures are leveraged investments and, it is possible to lose more than the amount of money deposited for a futures position. Please consider carefully whether futures are an appropriate instrument for you. Investors should ensure that they fully understand the risks involved, or contact their broker to obtain further clarification.