Hong Kong To Launch Silver Futures
- Physically settled contracts denominated in USD and CNH
- Trading and settlement fees, as well as SFC commission levy, waived for the first six months of launch
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the launch of Silver Futures contracts settled in US dollars (USD) and Offshore Renminbi (CNH), starting 8 June 2020, further expanding its commodities product suite.
— HKEX 香港交易所 (@HKEXGroup) June 2, 2020
The new Silver Futures will be physically settled in Hong Kong with its contract months covering the spot month and the following 11 calendar months. Trading and settlement fees, as well as the SFC commission levy, will be waived for the first six months of launch.
Hong Kong is the hub of physical silver trading in Asia. The launch of Silver Futures will complement HKEX’s existing metals products and provide investors and risk managers in the region with a new tool for trading, hedging and asset allocation, further strengthening Hong Kong’s status as an international financial centre.
HKEX launched its first deliverable precious metals contracts, the USD and CNH denominated gold futures, in July 2017. The launch of Silver Futures in Hong Kong also complements the precious metals products offered by the London Metal Exchange (LME), a wholly-owned subsidiary of HKEX, under its LMEprecious initiative.
Phase 5 for the Uncleared Margin Rules is a crucial threshold for many institutions in the region.
Baton Systems provides intra-day information with real-time visibility of margin requirements.
The Monetary Authority of Singapore approved BondEvalue as a Recognised Market Operator.
Li will remain as CEO of Hong Kong Exchange until 31 December 2020.
Open interest in MSCI contracts grew significantly in September.