May 24, 2016
HKEX and Thomson Reuters Sign Agreement for New Index Series
Hong Kong Exchanges and Clearing Limited (HKEX) and Thomson Reuters today (Tuesday) signed an agreement for the creation of a new series of Renminbi (RMB) indices.
The new index series will give the world benchmarks that reflect the development of the RMB’s effective exchange rate against other major currencies and are designed to be transparent, tradeable and compliant with the International Organisation of Securities Commission’s principles for financial benchmark governance and administration. Details of the new index series will be announced in the next few weeks.
“We are pleased to announce new benchmarks to support the internationalisation of RMB and Hong Kong’s position as a key hub for connecting international and Mainland markets and their participants,” said HKEX Chief Executive Charles Li. “Our RMB indices will serve as the basis for products to help investors manage currency risk, which will help maintain HKEX’s leadership in introducing RMB products for the offshore market.” As a pioneer in RMB product development, HKEX launched the world’s first physically delivered RMB currency futures in September 2012, a contract that is now the most liquid listed RMB futures contract in the world with US$312 million notional traded daily and over US$2.8 billion in open interest in the first quarter of this year.
“In working with Thomson Reuters, we have a partner that provides industry benchmarks for foreign exchange trading through strong connections to participants in the global foreign exchange market. This partnership will enable us to reach a broad community with indices that tell the continuing RMB internationalisation story.”
“Thomson Reuters and HKEX have a long-standing partnership which dates back to the formation of HKEX and has delivered a number of industry-leading solutions,” said Sanjeev Chatrath, Managing Director, Financial & Risk, Asia Pacific at Thomson Reuters. “We are pleased to further strengthen our relationship through the announcement of our new co-branded RMB index series.
“Thomson Reuters sits at the heart of global financial markets as a leading independent benchmark operator as well as interbank primary market and dealer-to-client liquidity provider for CNH* transactions. This partnership reaffirms Thomson Reuters’ open platform and trusted philosophy, and will go a long way to help market participants understand, analyse and capture opportunities that the RMB’s internationalisation presents at a time of increasing significance of RMB on the world stage.”
* CNH = RMB outside Mainland China.
About Hong Kong Exchanges and Clearing Limited
HKEX is a leading operator of exchanges and clearing houses, and one the world’s largest exchange groups by market capitalisation. The Group operates Hong Kong’s securities and derivatives markets as well as four clearing houses in Hong Kong: three provide clearing and settlement services for exchange-traded products and one focuses on the over-the-counter market. HKEX is the frontline regulator of companies listed in Hong Kong. HKEX is a leader in the trading and clearing of commodities derivatives through its ownership and operation of the London Metal Exchange (LME), the world’s premier base metals market, and the LME’s clearing house LME Clear. In January 2016, HKEX announced its Strategic Plan for 2016-2018, which includes plans to develop its multi-asset class capabilities that will enable it to achieve transformational growth arising from the Mainland’s integration with the world markets. Additional information is available on the HKEX website (www.hkexgroup.com).
About Thomson Reuters
Thomson Reuters is the world’s leading source of news and information for professional markets. Our customers rely on us to deliver the intelligence, technology and expertise they need to find trusted answers. The business has operated in more than 100 countries for more than 100 years. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, visit www.thomsonreuters.com.
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