CME Group changes FX options expiration time to align with OTC markets conventions


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Derivatives marketplace CME Group has announced that it will change the time its FX options expire to 10 a.m. ET. This change will begin with contracts expiring after June 9, 2019. Clients across time zones will be able to trade listed options that expire at the same time as most over-the-counter (OTC) contracts.

Aligning to the 10 a.m. New York OTC convention makes it easier for global clients to take advantage of CME Group’s leading electronic FX options platform and transfer risk more seamlessly between OTC and our cleared, deliverable solution,” said Paul Houston, CME Group Global Head of FX Products. “As more institutions need to comply with uncleared margin rules, we’re extremely focused on providing a regulated FX options solution that is capital efficient.

The change will take place for newly listed contracts. The first FX options contracts to be listed with the new expiration time will be the September 2019 contracts, available to trade on September 9, 2018.

CME Group offers more than 30 FX options contracts. CME FX volume averaged 1 million contracts per day in the second quarter of 2018, up 18 percent from the second quarter of 2017. The company also won the 2018 FX Week Awards in two categories, Initiative of the Year for FX Link, which launched in Q1 2018 and Best E-Derivatives Platform.

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CME Group changes FX options expiration time to align with OTC markets conventions

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