HSBC trades first renminbi non-deliverable swaption
HSBC has traded the first ever option on a renminbi non-deliverable interest rate swap, the bank said in a statement.
In August, HSBC and Standard Chartered Bank conducted the first ever renminbi non-deliverable interest rate swap transaction.
Anita Fung, head of global markets, Asia-Pacific at HSBC in Hong Kong, said: “Following the successful launch of NDIRS contracts in August, there has been a healthy pickup in activity, with the volume of such contracts reaching 6.7 billion renminbi in barely three months.”
“Development of the renminbi NDIRS swaption provides offshore market participants [with] the opportunity to hedge against the underlying risk, denominated in a currency that is not at this stage convertible on the capital account,” Fung added.
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