CME Group To Launch Wednesday Weekly Options
- The new offering comes amidst a growing need to manage risk surrounding mid-week news events
In response to a growth in demand and the need for traders to manage risk at a detailed level, the Chicago Mercantile 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 (CME) has announced the launch of Wednesday Weekly FX Options.
This will be similar to the Friday Weekly FX Options that are available currently but instead of Friday, these options would expire on Wednesday.
The Wednesday Options would be available for five major pairs, namely AUD/USD, GBP/USD, CAD/USD, EUR/USD, and JPY/USD and would be ready for trading from October 30, pending regulatory approval.
Paul Houston, Global Head of FX at CME Group, commented: "Our clients want to further refine their exposure to mid-week announcements from the Federal Reserve, Bank of Canada and Reserve Bank of Australia's meetings before the end of this year. More broadly, as event-related trading activity continues to grow, they are looking for the additional granularity of these short-dated FX weekly options, as well as the ability to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term capital efficiencies and spreading opportunities available in our markets."
The existing Friday Weekly Options have been enjoying a great run, with record daily average volumes in September 2017, exceeding the volume from last year by 76.6 percent.
With the major global markets maturing at a fast pace, it has become increasingly difficult for traditional fund managers to generate the same kind of returns that they used to. This has led to the lookout for more riskier trading products as a means of generating better returns.
The Wednesday FX options would be European style of options, like the Friday Option, which means that they can be exercised only at their maturity.
In response to a growth in demand and the need for traders to manage risk at a detailed level, the Chicago Mercantile 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 (CME) has announced the launch of Wednesday Weekly FX Options.
This will be similar to the Friday Weekly FX Options that are available currently but instead of Friday, these options would expire on Wednesday.
The Wednesday Options would be available for five major pairs, namely AUD/USD, GBP/USD, CAD/USD, EUR/USD, and JPY/USD and would be ready for trading from October 30, pending regulatory approval.
Paul Houston, Global Head of FX at CME Group, commented: "Our clients want to further refine their exposure to mid-week announcements from the Federal Reserve, Bank of Canada and Reserve Bank of Australia's meetings before the end of this year. More broadly, as event-related trading activity continues to grow, they are looking for the additional granularity of these short-dated FX weekly options, as well as the ability to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term capital efficiencies and spreading opportunities available in our markets."
The existing Friday Weekly Options have been enjoying a great run, with record daily average volumes in September 2017, exceeding the volume from last year by 76.6 percent.
With the major global markets maturing at a fast pace, it has become increasingly difficult for traditional fund managers to generate the same kind of returns that they used to. This has led to the lookout for more riskier trading products as a means of generating better returns.
The Wednesday FX options would be European style of options, like the Friday Option, which means that they can be exercised only at their maturity.