About CME Chinese Renminbi Futures

Contracts
The contract size will be 1,000,000 renminbi with the daily settlement variation and cash settlement on expiration in U.S. dollars, euro and Japanese yen, respectively. These products expire monthly and closely replicate the non-deliverable forward (NDF) market; in addition, they offer the added benefit of virtually eliminating counterparty risk with the guarantees provided by CME Clearing. CME Chinese Renminbi contracts will be traded electronically only, virtually around the clock from Sunday afternoon to Friday afternoon, on the CME Globex® electronic trading platform.

Renminbi Price Exposure
The renminbi value fluctuates in a "managed-float" tied to a basket of currencies, including the U.S. dollar, euro, Japanese yen and Korean won, which are the currencies of some of China's major trading partners. Until July 2005 the Chinese renminbi was pegged to the U.S. dollar; now, however, the exchange rate is based on a managed float, with U.S. dollar/Chinese renminbi rates allowed a daily fluctuation of ±0.3 percent. Day-to-day fluctuations in non-dollar renminbi "cross rates," such as the euro and Japanese yen, are allowed at ±3.0 percent, and as a result these cross-rate products may be more volatile than the dollar-based renminbi contract.