China’s interbank market has just seen the launch of a new category of derivatives trading.
On 23 March the Postal Savings Bank of China (PSBC) successfully completed the first batch of renminbi interest rate option trades on China’s interbank market.
The trades arrive following the launch of trials of interest rate options trading by the China Foreign Exchange Trade System and National Interbank Funding Centre.
The Centre said that it was actively driving renminbi interest rate options innovations, in order to “better employ the role of interbank interest rate derivatives markets in supporting the real economy and diversifying means of offsetting market risk.”
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