The derivatives marketplace operator CME Group just announced the expansion of the foreign exchange (FX) offering with six FX monthly futures contracts. These 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, February 27, 2017 and will be listed on Chicago Mercantile Exchange (CME) subject to regulatory review.
FX monthly futures will be offered on six currency pairs where CME Group already offers quarterly futures: AUD, GBP, CAD, EUR, JPY and EUR/GBP. For each currency pair an additional three monthly contracts 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.
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” said Paul Houston, Executive Director and Global Head of FX at CME Group. “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.
Tom Gentile, Head of FX trading at Crabel Capital Management added:
We are excited for the launch of FX monthly futures at CME as more tenor granularity will give the market increased flexibility in which to trade.
Jack Hansen, Chief Investment Officer at Parametric Portfolio Associates concluded:
Parametric has been using CME products for over 30 years to provide our clients with effective exposure overlays and currency risk management solutions, and we welcome the added flexibility provided by new monthly maturities.