CME to list new European-Style FX Option Contracts in place of American-Style

CME Group (NASDAQ: CME) announced today that effective Sunday, August 7, 2016 for trade date Monday, August 8, 2016, and pending all relevant CFTC regulatory review periods, CME will list six new European-style Weekly, Monthly, and Quarterly Option.

The European-Style Option Contracts will exercise into the nearest quarterly futures contract on the last trading day of the contract month based upon the 2:00 pm Central Time fix price of the underlying futures contract.

The key difference between American and European options relates to when the options can be exercised:

  • A European option may be exercised only at the expiration date of the option, i.e. at a single pre-defined point in time.
  • An American option on the other hand may be exercised at any time before the expiration date.

The contracts to be listed are as follows:

  1. Australian Dollar/US Dollar (AUD/USD)
  2. British Pound/US Dollar (GBP/USD)
  3. Canadian Dollar/US Dollar (CAD/USD)
  4. Euro/US Dollar (EUR/USD)
  5. Japanese Yen/US Dollar (JPY/USD)
  6. Swiss Franc/US Dollar (CHF/USD)

Concurrent with the initial listing of the European-Style Option Contracts effective Sunday, August 7, 2016 for trade date Monday, August 8, 2016, CME will cease listing additional contract months for the existing American-style Weekly, Monthly, and Quarterly Option Contracts of the same instruments.

The European-Style Option Contracts shall replace the existing American-Style Option Contracts. The last listed contract month of the American-Style Option Contracts will be based upon the June 2017 expiration. CME will permanently delist the American-Style Option Contracts on June 9, 2017.

To view the full notice from CME click here.

Related News


CME to list new European-Style FX Option Contracts in place of American-Style


Send this to a friend

Subscribe to LeapRate
Fill out the form below for more information
for lising in LeapRate's Forex Yellow Pages

Please enter the company name, email address to reach you and phone # (optional):

Please fill out the message field to the right for any questions or special inquiry: