Onshore forex options debut in China
Foreign exchange options debuted in mainland China today with a number of deals taking place. China now has an onshore market for forex forwards, forex options, forex swaps and cross-currency swap, offering market participants more hedging tools as the renminbi becomes increasing prominent in trade and investment.
China today officially gave the go-ahead for forex option products to trade onshore, with several banks completing trades in the inter-bank market. The move follows the introduction of new rules by the State Administration of Foreign Exchange (Safe) that permits locally-based banks, financial institutions and corporations to trade forex options.
China's currency regulator issued a circular on February 16 to give notice it would permit trading of so-called ‘European-style' renminbi options on
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