HKEX and Thomson Reuters to create new renminbi indices

The Hong Kong Exchange (HKEX) and Thomson Reuters have agreed to create a new series of renminbi indices that will track the currency's effective exchange rate against other major currencies.

The new indices are designed to be tradeable and comply with the International Organisation of Securities Commission's principles for financial benchmarks.

"Given the increasing presence of the renminbi as a global trading currency, it is a great opportunity for us to partner with HKEX to provide a series of indices that will use global standards to help our clients understand, analyse and capture the opportunities presented by renminbi internationalisation," says Stephan Flagel, global head of indices at Thomson Reuters.

"We are pleased to announce new benchmarks to support the internationalisation of the renminbi, and Hong Kong's position as a key hub for connecting international and mainland markets and their participants," says HKEX chief executive Charles Li. "Our renminbi indices will serve as the basis for products to help investors manage currency risk, which will help maintain HKEX's leadership in introducing renminbi products for the offshore market."

The Hong Kong Exchange launched the first physically-delivered renminbi currency futures in September 2012 – currently one of the most liquid listed renminbi futures contracts, with a daily trade average of $312 million and $2.8 billion in open interest in the first quarter.

Thomson Reuters is a leading benchmark operator, and a prominent interbank primary market and provider of dealer-to-client liquidity for the offshore renminbi. A daily average of $373 billion was traded on Thomson Reuters' currency trading platforms across all currencies and instruments in April.