UPDATE – Important clarification:
The currency market uses CNY as the currency code for the “onshore” Chinese Renminbi Yuan, and CNH as the currency code for the “offshore” Renminbi, typically held in Hong Kong. The new futures contracts described herein are denominated in CNH, the offshore Renminbi, and CME’s clearing reports and datafiles will show the currency code as CNH.
Usage in the industry is not entirely consistent, however, and your settlement and/or delivery bank for the offshore Renminbi may refer to it using the currency code of CNY. Also please note that SWIFT requires CNY as the currency code for both the onshore and the offshore Renminbi.
This advisory describes CME’s new physically delivered FX futures on the exchange rate between the US Dollar and the Offshore Chinese Renminbi. These are referred to as Standard USD Offshore Renminbi (USD/CNH) Futures and E-micro USD Offshore Renminbi (USD/MNH) Futures. The Globex and clearing product codes for the two new futures are CNH and MNH, respectively.
Effective on Sunday, February 24, 2013, for the trade date of Monday, February 25, 2013, CME is launching new Standard-size and E-micro-size U.S. Dollar/Offshore Chinese Renminbi (USD/CNH) Futures contracts on CME Globex and CME ClearPort. These futures contracts feature physical delivery of Offshore Chinese Renminbi (CNH), priced in interbank terms of Offshore Chinese Renminbi per U.S. dollar with associated daily settlement variation banked in Offshore Chinese Renminbi, and fungible (offsetting) on a 10 to 1 basis between the micro and the full-sized contracts.
For the full text of this advisory...