Saxo Bank officially launches USD/CNH options contracts

OTC options on USDCNH to be made available on SaxoTrader Platform

Saxo Bank, has officially announced the addition of OTC options on USDCNH to its platform to allow clients better access to trading on the offshore Renminbi. We reported this news last Friday when it slid under the radar of Saxo’s March monthly volume report. The introduction of USDCNH options is particularly well timed given recent market developments; since the February fall of both the onshore Renminbi (CNY), and offshore Renminbi (CNH), China has widened the USD trading band for CNY to 2% (from 1%) as part of the plan to allow wider day-to-day fluctuations in the exchange rate as an evolutionary step toward a more free-floating currency, and to make Yuan more accessible internationally.

The resulting volatility in the offshore Renminbi has created some interesting trading opportunities for investors. Saxo Bank already offers CNH spot against a range of currencies, and the introduction of USDCNH options provides clients with even more flexibility in their FX trading and hedging strategies. Saxo Bank’s market leading platform provides not only live prices, deep liquidity and full transparency across tenors and strikes, but also world class FX options reports including net delta by currency, spot ladder and spot/volatility grid.

Elizabeth Missfeld, FX Product Manager at Saxo Bank, said: “USDCNH is our clients’ opportunity to benefit from actions in China. With the recent further band widening, China is implementing its plan to further internationalize the Yuan, and I am glad that our clients can now also take part in volatility trades in the Chinese offshore market.”

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