Currency futures could be the first financial futures contracts introduced in China, ahead of stock index and bond futures, following further FX deregulation and continued problems in China's securities industry.
The country's central bank, People's Bank of China (PBoC), introduced several measures this week to further liberalise its FX market. Qualified import/export companies and non-banks can now trade the domestic spot FX market while renminbi (RMB) forwards and swaps can now be traded by qualified financial institutions.
The development follows a string of initiatives by the central bank this year, including de-pegging the RMB to the dollar, allowing eight new FX pairs to be...