CME Clearing to accept offshore Chinese Renminbi (CNH) as collateral for futures trading

CME Clearing to accept offshore Chinese Renminbi (CNH) as collateral for futures trading, partner with HSBC for Far East custodial services

05/12/2011

CME Group, the world's leading and most diverse derivatives marketplace, today announced that it will include offshore Chinese Renminbi (CNH) in the range of instruments to meet performance bond requirements on all exchange futures products cleared through CME Clearing, effective January 2012. The company also announced with HSBC Global Banking and Markets that HSBC Hong Kong will serve as CME's first Far East clearing custodian in Asia.

CME Clearing and HSBC have built the operational framework enabling HSBC Hong Kong to hold CNH deposits from CME Group clients and to use those deposits as collateral.

Kim Taylor, President, CME Clearing, said: "As our business in Asia grows, we are looking at ways to provide services that fulfill the needs of our increasingly diverse customer base. We are delighted to partner with HSBC in Asia to inaugurate this new service and look forward to adding further asset types and currencies over time."

Diane S. Reyes, Global Head of Payments and Cash Management, HSBC said: "This new partnership with CME represents a significant development for our business and acknowledges HSBC's leadership position in the development of the CNH market. The agreement between CME Clearing and HSBC Hong Kong, the first of its kind, will provide CME and its members with access to this increasingly dynamic region."

CME Group continues to build on its commitment to its business in the Asian region. The company has a broad presence throughout Asia, with Asia-Pacific headquarters in Singapore, offices in Hong Kong, Seoul, Shanghai and Tokyo, and telecommunications hubs in Kuala Lumpur, Seoul and Singapore. CME Group continues to develop products targeted to help Asia-based investors manage their risk, and volume originating outside the U.S. now accounts for 22 percent of all CME Group volume.