CME Group Corp., one of the world’s largest derivatives marketplaces, is planning options trading in the Chinese renminbi, the Hong Kong Economic Journal reported Monday, citing Derek Sammann, senior managing director for foreign exchange, metals and options solutions.
The idea coincides with a potential move by rival Hong Kong Exchanges and Clearing Ltd. (00388.HK) to introduce a similar product, although the Chicago-based mercantile exchange has yet to put the plan into a time frame.
Sammann said currency options have the highest growth among other derivatives in over-the-counter transactions of offshore renminbi products in which US$100 billion worth of contracts change hands everyday.
Such a high volume of daily transactions in the cash market supports the development of related foreign exchange futures, he said.
Sammann expects the renminbi business to become a significant part of CME Group’s foreign exchange division in the long term despite the lackluster performance of a US dollar-renminbi futures contract it launched recently compared with similar products listed on the Hong Kong stock exchange.
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