SINGAPORE, Sept. 13, 2011 /PRNewswire-Asia/ -- Saxo Capital Markets, the subsidiary of Denmark-headquartered trading and investment specialist Saxo Bank A/S, introduced the new USDCNH currency cross on its trading platforms. This allows clients of Saxo Capital Markets to trade the offshore Chinese Renminbi against the US Dollar.
Streaming prices on ticket sizes up to USD 3 million will be available during regular FX trading hours from 8am Mondays Sydney time to 5pm Fridays New York time. Larger trade sizes will be available on a Request for Quote (RFQ) basis. The Margin Requirement for the USDCNH is 8% and the minimum trade size is USD 5,000 notional.
The USDCNH will be available to all Saxo Capital Markets' clients, including those of white label clients. However, the cross will not be available to clients of Saxo Capital Markets HK Limited.
Claus Nielsen, Head of Trading, Saxo Bank comments:
"Over the past few years, the Chinese government has allowed the Renminbi to appreciate against the US Dollar, and has gradually deregulated the currency's trading. CNH offers an important option to take and manage Renminbi risk and exposure to real investments and positive yield. The development of the offshore Renminbi CNH is integral to China's broader strategic plans to internationalise and turn the Renminbi into a viable reserve currency.
"London, whose 37 per cent share of the global forex market is twice the one of its nearest rival New York, has just been officially approved by China as an offshore centre for trading Renminbi. We expect USDCNH to become an interesting trading currency for our clients in the future."
Disclaimer:
Saxo Capital Markets Pte. Ltd. ("Saxo Capital Markets") is licensed as a Capital Market Services provider and an Exempt Financial Advisor, and is supervised by the Monetary Authority of Singapore.
Important Note: This currency cross is one of the more complex crosses. You should ensure that you fully understand the cross and its attendant risks; and that you are comfortable with and able to accept the risks before deciding to trade in this currency cross.
Please note that because the Renminbi is a restricted currency, the spot and exchange rates for Renminbi against the US dollar are different, including but not limited to, depending on whether they are the so called on-shore or off-shore rates. The reference rate we are using is the offshore USDCNH.
The Chinese Renminbi remains a restricted currency and subject to foreign exchange restrictions within its home jurisdiction. The Chinese government has to date adopted a general policy against the internationalisation of the Chinese Renminbi. You should note and understand the risks attendant to these facts in making any decision to engage in transactions in any foreign exchange transaction with the Chinese Renminbi as one of the two currencies in any currency pair.
Reference pricing for marking to market valuations and settlement will be to the USDCNH as bid/offer quoted by the major financial institutions in the FX space. There is no guarantee that this will always be available and you should understand the market disruption risk and its consequence in trading by reference to the offered currency cross.
One consequence of trading in or by reference to a restricted currency is that it is subject to enhanced risk of illiquidity. The underlying/substantive market for and in Chinese Renminbi may at times face a relatively disproportionate amount of either buying or selling relative to the availability of the physical currency. As such, liquidity may be limited to a certain amount of the currency, particularly on an off-shore basis, on a given day or/and large pricing moves may occur due to a higher than expected level of action in the underlying reference market.
Despite the above, the bid/offer spread can be significantly wider than expected and you should also understand and take that into account in making any decision to engage in transactions in any foreign exchange transaction with the Chinese Renminbi as one of the two currencies in any currency pair.
Risk Warning: You should carefully consider whether trading in leveraged products is appropriate for you in the light of your financial circumstances. You should be aware that dealing in products that are highly leveraged carry significantly greater risk than non-geared investments such as share trading. As such, you could both gain and lose large amounts of money. You may sustain losses in excess of the moneys you initially deposit and also in excess of the margin required to establish and maintain any positions in leveraged products.
For further information, please see:
http://sg.saxomarkets.com/about-us/general-disclaimer
About Saxo Capital Markets
Saxo Capital Markets Pte Ltd is a wholly-owned subsidiary of Saxo Bank A/S, the Copenhagen-headquartered online trading and investment specialist. It serves as the Asia Pacific headquarters and holds a Capital Markets Services license from the Monetary Authority of Singapore. Saxo Capital Markets also holds a Commodity Broker licence from The International Enterprise Singapore.
Clients can trade Forex, CFDs, Stocks, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, its leading multi-asset online trading platforms.
SaxoTrader is available directly through Saxo Capital Markets or through one of its institutional clients. White labelling is a significant business area for Saxo Capital Markets, and involves customising and branding of its online trading platform for other financial institutions and brokers.
Saxo's position as an established FX house and its leading role in the foreign exchange market has been recognised by the industry's leading reviews. In 2011, the Saxo Bank Group picked up six awards at the Euromoney annual FX survey for the following categories: Best Improved Overall Market Share by Volume ($10bn - $25bn) and ($5bn - $10bn), Best Speed of Execution, Best Research and Analytics, Best Effective Risk Management and Execution Strategies and Best Integrated Workflow and Compliance Solutions. Saxo Bank was also named "Best Forex Broker in Northern Europe" and "Best White Label Solution Provider" in the World Finance Foreign Exchange Awards 2011.
For more information, please visit www.saxomarkets.com.sg
Media contacts:
Saxo Capital Markets Pte Ltd
Celeste Fong
+65 6303-7713
xcfo@saxomarkets.com.sg
