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The following is issued on behalf of the Hong Kong Monetary Authority:
The Treasury Markets Association (TMA) announced today (June 23) that the Spot USD/CNY(HK) Fixing would be formally launched on June 27, 2011.
The Fixing is calculated by averaging the middle quotes after excluding the highest two quotes and lowest two quotes from the rates provided by the contributing banks (see Annex A for specifications about the Fixing).
The Spot USD/CNY(HK) Fixing will serve as a benchmark for the market exchange rates of USD against CNY(HK) at 11am Hong Kong time. The Fixing is expected to provide a reference rate for the pricing of renminbi (RMB) products in the offshore market.
A total of 15 banks active in the offshore RMB market have been designated by the TMA to contribute the price quotes for the calculation of the Fixing. The panel of contributing banks will be reviewed regularly (see Annex B for the list of contributing banks).
Reuters Limited has been appointed as the Calculating Agent for the computation and dissemination of the Spot USD/CNY(HK) Fixing.
The calculated Spot USD/CNY(HK) Fixing will be published on both Reuters Instrument Code <CNHFIX=> and Reuters page CNHFIX at 11.15am Hong Kong time from Monday to Friday, except public holidays, or if Typhoon Signal No. 8 and above is hoisted.
"The availability of a representative Fixing for the Spot USD/CNY(HK) exchange rate will be conducive to further development of renminbi products in Hong Kong, which will be an essential element for the further expansion of Hong Kong's RMB offshore businesses. The TMA will continue to work closely with market participants to facilitate development of new products and services to meet demand in the Hong Kong treasury markets," said Mr Lawrence Lam, Chairman of the TMA's Market Practices Committee, which developed the Fixing in consultation with market participants.
Ends/Thursday, June 23, 2011
Issued at HKT 16:56
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