CME Group will soon accept offshore yuan as collateral on futures trades cleared through its platform, CME Clearing. The world's biggest derivatives exchange operator said it has appointed HSBC Hong Kong as first clearing custodian in the Far East. The service will allow CME clients to place yuan deposits in the Hong Kong bank and use those as collateral for futures trades. Annie Koh, Associate Professor of Finance at SMU, said this will help member firms access highly liquid assets as collateral for margins and loans.
Channel NewsAsia