On 19 September 2014, the Singapore Exchange (the “SGX”) announced that with effect from 20 October 2014, new Asian foreign exchange (“FX”) futures contracts on Chinese Renminbi (RMB) (USD/CNH, CNY/USD), Japanese Yen (USD/JPY) and Thai Baht (THB/USD) are available for trading.

The SGX RMB futures contract complements the range of RMB-denominated investment products in Singapore and will further boost the growth and deployment of RMB deposits pool in Singapore.

At the same time, the SGX also announced that the Bank of China (the “BOC”) will be the pioneer market-maker for its RMB futures and the SGX’s first Chinese settlement bank for its derivatives market.

To facilitate more efficient settlement of RMB-denominated products, the SGX will add RMB cash collateral to its list of acceptable margin collaterals. This allows for RMB to be used for all open positions maintained on SGX Derivatives Clearing and further promotes the use of RMB in liquidity and collateral management activities. 

Reference materials

Please click on the links below for the SGX press release relating to this development and the contract specifications for the new SGX FX futures contracts. These materials are available from the SGX website www.sgx.com: