Get answers to frequently asked questions about CME Group's Offshore Chinese Renminbi futures contract (USD/CNH).
The CNH futures contract is the Offshore Chinese Renminbi contract (USD/CNH) on CME Globex and CME ClearPort. Available in standard and E-micro contracts, both feature physical delivery of Chinese Renminbi (RMB) in Hong Kong.
The contract is physically-delivered and based on the offshore RMB rate quoted in interbank terms (otherwise known as the European quoting convention, where the number of units of the foreign currency are per dollar).
The CNY futures contract is cash-settled and based on the onshore RMB rate in both American and European terms.
For a variety of market participants, CNH is already widely traded in the OTC market. The USD/CNH futures contract is a useful risk management tool for market participants with its liquid central limit order book, largest regulated foreign exchange marketplace, and central counterparty clearing offering netting and capital efficiencies, part of the complete RMB product suite comprising both on-shore RMB products that are quoted in American and European terms, offshore RMB products (CNH), and OTC clearing of RMB products.
No, the daily pays and collects of the contracts are in Chinese RMB via Hong Kong accounts on a daily basis.
USD/CNH futures contracts are available in two sizes:
E-micros are fungible (offsetting) with the standard contract. As an example, a 10-contract long (short) E-micro position will offset one short (long) standard contract if both positions are held in the same account. E-micros, when combined with standard contracts, help you create more accurate hedges by better managing tail risks.
Yes, calendar spreads on the standard-size contracts are available on CME Globex out to one year forward.
Sundays through Fridays: 5:00 p.m. to 4:00 p.m. Central Time(CT) the next day.
On Fridays, the CME Globex platform closes at 4:00 p.m. CT and reopens Sunday at 5:00 p.m. CT
Trading ceases at 11:00 a.m. Hong Kong time on the second Hong Kong business day immediately preceding the third Wednesday of the contract month.
In Central Standard Time (CT), trading ceases at 9:00 p.m. CT during the winter and 10:00 p.m. CT during the summer.
For speculative position limit purposes, standard- and E-micro-size futures positions are aggregated.
A participant shall not own or control more than the aggregated equivalent of 10,000 CME standard- size contracts (1,000,000,000 U.S. dollars in notional value), in all months combined, net long or short, at any time, or no more than 5000 CME standard-size contracts (500,000,000 U.S. dollars in notional value), in the delivery month contract, net long or short, on or after the day one week prior to the termination of trading day.
Exemptions available for bona fide hedgers, but not in the delivery month contract during the last five business days of trading.
Final settlement facilitated through delivery of $100,000 (standard contract) or $10,000 (E-micro contract) from short to long versus delivery of the equivalent value of CNH from long to short through correspondent banks approved by CME Clearing on the business day of the third Wednesday of the contract month. Payments of CNH versus USD embargoed by CME Clearing pending receipt of payment orders from both long and short.
Options on standard-size contracts will be available at a later date.
Yes. Prices for USD/CNH are available for 13 consecutive calendar months with an extension of the tenor of the contracts for up to three years via additional March quarterly cycle months. This allows for block trading opportunities at the longer end of the curve, which better serves customer needs arising from increased CNH activity, whether it is for trade or non-trade purposes.
For standard contracts, there is a 10 contract minimum for block trades. E-micro contracts are not eligible for block trades.