International futures dealers in Hong Kong say many of the world's investors consider the SAR an 'exotic' market compared to established trading centres.
But Banque National de Paris (BNP) trader Bertrand Hongre believes the introduction of Hibor could change that perception.
He said Hong Kong's interest rate market was dominated by major local banks and a limited number of London banks. The absence of a standard financial measuring instrument, such as Hibor, often frightened potential players away from Hong Kong.
BNP and a host of other major traders in Hong Kong say they are excited by the prospects of Hibor's launch and speculate the new product will open up avenues for traders across the world.
Mr Hongre anticipates BNP will pick up new clients, primarily banks and treasury dealers, when it begins trading Hibor contracts.
'More people will be taking positions in the interest rate market and that will then add depth to the market,' he said. 'More people will be more comfortable with Hibor.' Another BNP trader said Hibor would counter recent volatility in Hong Kong's markets and the resulting jump in interest rates to combat potential speculation on the Hong Kong dollar.