AGL 37.89 Decreased By ▼ -0.26 (-0.68%)
AIRLINK 124.10 Increased By ▲ 2.59 (2.13%)
BOP 5.67 Decreased By ▼ -0.18 (-3.08%)
CNERGY 3.75 No Change ▼ 0.00 (0%)
DCL 8.55 Increased By ▲ 0.15 (1.79%)
DFML 40.48 Decreased By ▼ -0.41 (-1%)
DGKC 87.10 Increased By ▲ 2.50 (2.96%)
FCCL 33.98 Increased By ▲ 1.28 (3.91%)
FFBL 66.01 Increased By ▲ 0.51 (0.78%)
FFL 10.20 Increased By ▲ 0.15 (1.49%)
HUBC 104.45 Increased By ▲ 0.65 (0.63%)
HUMNL 13.45 Increased By ▲ 0.20 (1.51%)
KEL 4.78 Increased By ▲ 0.35 (7.9%)
KOSM 6.84 Decreased By ▼ -0.25 (-3.53%)
MLCF 38.84 Increased By ▲ 1.34 (3.57%)
NBP 60.35 Increased By ▲ 0.10 (0.17%)
OGDC 179.65 Increased By ▲ 7.40 (4.3%)
PAEL 24.97 Increased By ▲ 0.17 (0.69%)
PIBTL 5.71 Increased By ▲ 0.01 (0.18%)
PPL 153.00 Increased By ▲ 11.31 (7.98%)
PRL 22.79 Increased By ▲ 0.07 (0.31%)
PTC 14.91 Increased By ▲ 0.17 (1.15%)
SEARL 66.85 Increased By ▲ 2.29 (3.55%)
TELE 7.01 Decreased By ▼ -0.13 (-1.82%)
TOMCL 35.70 Increased By ▲ 0.20 (0.56%)
TPLP 7.32 Increased By ▲ 0.03 (0.41%)
TREET 13.99 Decreased By ▼ -0.21 (-1.48%)
TRG 50.95 Decreased By ▼ -0.80 (-1.55%)
UNITY 26.40 Decreased By ▼ -0.20 (-0.75%)
WTL 1.23 Increased By ▲ 0.01 (0.82%)
BR100 9,717 Increased By 233.5 (2.46%)
BR30 29,237 Increased By 866.2 (3.05%)
KSE100 90,860 Increased By 1893.1 (2.13%)
KSE30 28,458 Increased By 630.4 (2.27%)

Options and futures exchange operator CME Group and China Construction Bank will begin the physical delivery of renminbi for new futures contracts in London, CME Group said in a statement on Monday. The contracts, the subject of a memorandum of understanding announced by the two companies on Monday, will be listed on CME Group's European exchange, CME Europe, the statement said.
China Construction Bank is Beijing's official clearing bank in London, opened as part of a broad push over the past two years to make the yuan currency more easily available internationally as it pushes for formal reserve currency status. Chinese President Xi Jinping is in Britain for meetings this week that are expected to lead to a raft of business and financial initiatives, with the City of London striving to become China's main financial partner outside Asia.
Under the terms of the deal with CME, CCB also intends to take part in the LBMA silver price-setting mechanism, along with HSBC, J.P. Morgan Chase, Mitsui & Co Precious Metals, the Bank of Nova Scotia - ScotiaMocatta, Toronto Dominion Bank and UBS. CME said contracts deliverable into Hong Kong to convert offshore Chinese renminbi into dollars and euros, which had been available on its platforms since April 2014, will now be amended so that physical delivery can take place in London.
"The ability to transact during London hours is of paramount importance to those institutions who value flexibility in managing their positions in markets where prices can move sharply in short periods of time," William Knottenbelt, senior managing director and head of international at CME Group, said in the statement. "CME Group and CCB have shared a strong desire to promote RMB liquidity in London. We are committed to building out the necessary infrastructure and RMB products for a thriving marketplace as well as extending our partnership into other areas." CCB's chairman, Hongzhang Wang, said the bank "wants to support the development of the offshore RMB market in London" through its engagement with CME Group.
"(This is) a further step in China's attempt to open up and make its market more transparent," Saxo Bank's head of commodities research Ole Hansen said of the deal. "Increased volumes lead to increased participation so the challenge will be to establish a proper level of liquidity. Otherwise it will go the same way as other currency futures where low liquidity has kept traders/speculators away."

Copyright Reuters, 2015

Comments

Comments are closed.