CME Group Expands FX Offering with New FX Monthly Futures Contracts

CME Group, one of the world’s paramount derivatives marketplaces, today announced the expansion of its foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term offering with six FX monthly futures contracts.

The new contracts provide FX market participants with access to the front months of the FX forward curve with the capital and operational benefits of trading listed futures. FX monthly futures are scheduled for trading on Monday, 27 February, 2017 and will be listed on Chicago Mercantile Exchange (CME) subject to regulatory review.

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Today’s addition to CME Group’s offerings follows last November’s announcement of a new Precious Metals Spot Spread, enabling customers to effectively manage spot-futures spread price risk, and which are due to begin trading on the 9th of January, as reported by Finance Magnates.

FX Monthly Futures

FX monthly futures will be offered on six currencies on which CME Group already offers quarterly futures: AUD, GBP, CAD, EUR, JPY and EUR/GBP. For each currency pair an additional three month contract will be listed at any given time resulting in four consecutive months of monthly expiries. The first serial listed will be the April 2017 contract.

Paul Houston, Executive Director and Global Head of FX at CME Group, commented: "The launch of FX monthly futures is in response to feedback from global customers who want to trade FX futures for the capital efficiencies they bring but require increased granularity to meet their hedging needs. CME is a primary FX market, offering users the ability to trade FX in an efficient and transparent manner. Our current number of large open interest holders in foreign exchange show record levels of participation in our marketplace."

CME Group is the largest regulated FX marketplace in the world and offers a comprehensive product suite of more than 90 futures and more than 30 options contracts.