HSBC launches RMB currency crosses
HSBC has rolled out six new currency trading pairs tied to the
offshore RMB. HSBC is now providing a continuous 24-hour streaming of
rates through its single dealer platform, proprietary API1 as well as
supporting the global inter-dealer primary venues. This will be the
first time that rates will be continuously streamed on an interbank
platform for direct offshore RMB (CNH) crosses, other than the USD/CNH
trading pair.
HSBC has purposely selected two currency pairs for three key regions:
Asia, Europe and the Americas.
HSBC's new offshore RMB currency pairs comprise are, EUR/CNH(Euro),
GBP/CNH (British pound), CNH/HKD (Hong Kong dollar), SGD/CNH (Singapore
dollar), CAD/CNH (Canadian dollar) and CNH/MXN (Mexican peso) This is in
addition to the Group's already existing USD/CNH capabilities. Other CNH
crosses will be added in time.
Frederic Boillereau, HSBC's Global Head of FX and Commodities, said:
"HSBC continues to lead from the front in innovation for offshore RMB
products and services. No other bank currently offers CNH crosses on an
interbank basis, a feature we believe will be pivotal to facilitating
market liquidity. As one of the largest global FX market participants
and a key player in the CNH space, we have a responsibility to our
clients to take the lead in developing a benchmark and market for direct
CNH crosses."
Anita Fung, HSBC's Chief Executive Officer, Hong Kong, added: "With
China standing as the world's largest exporting nation, demand for RMB
has risen substantially. As a result, global payments transacted in RMB
have risen at a faster pace than that of total payment transactions
worldwide. The development of additional offshore RMB trading pairs to
support payment settlement and hedging needs globally will be
fundamental to the continued internationalization of the RMB and will
further reinforce Hong Kong's status as the leading offshore RMB hub
globally."
While the USD/CNH currency pair has been a common feature in the FX
markets, direct crosses in other currencies linked to the RMB have been
virtually non-existent, other than through bilateral trades. These
bilateral trades are often accompanied by a two-fold process to
undertake a EUR/CNH transaction; a EUR/USD trade will need to take place
first then followed by a USD/CNH deal. HSBC's direct CNH crosses avoid
the necessity to cross two bids and offers, thereby reducing the
transaction costs for HSBC clients.
HSBC has consistently championed offshore RMB developments, leading
on Initiatives to support the growth of the CNH market. HSBC became the
first bank to publish offshore RMB trade finance standard rates in 2010
and was the first foreign bank to provide interbank RMB bond clearing
and custody services in mainland China. In addition to leading on dim
sum bond underwriting in Hong Kong, the Group has also led on the
world's first international RMB bond out of London. HSBC also has the
largest RMB trade settlement network of any bank, with capabilities in
59 markets across six continents. |