The problem for many brokers adding CNH (Renminbi / Yuan) based pairs has been the (in)ability to hedge those positions, if necessary, among larger liquidity providers and in the futures market. While the CME’s announcement that it is adding deliverable Renminbi (CNH) futures wasn’t aimed just at the retail FX market, we certainly believe that actions like these will make offering Renminbi trading more attractive and easier to do to Forex brokers.
We also believe that when a company such as CME Group does something like this, it is done with the implicit permission of Chinese regulatory authorities. Meaning, that China (as we’ve reported in the past) is actively looking to make the Yuan more convertible and tradable in international markets.
The CME Group didn’t give an exact timeline for adding deliverable CNH, just saying that it will be launched in the coming months.
FX futures trading has slowed at the CME Group in the summer months, with the CME Group reporting in August its lowest volume levels in FX dating back to 2009.
To see the full CME Group announcement click here.
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