According to CME Group, the new currency pairs include the Canadian dollar, Japanese yen and Swiss franc and will be quoted in IMM (American) terms, or US dollars per foreign units.
This is in addition to the six existing E-micro Forex futures contracts launched in 2009, which are quoted in interbank (European) terms and include the Euro, British pound, Australian dollar, Japanese yen, Swiss franc and Canadian dollar.
CME Group claims that its E-micro Forex contracts represent one-tenth the size of the corresponding FX contracts. The contracts are physically delivered and exclusively traded on the CME Globex electronic trading platform.
CME Group managing director of FX and interest rate products Derek Sammann said these three new currency pairs will complement CME Group’s existing suite of E-micro Forex contracts and provide the group’s retail customers with a product that has the right risk/reward ratio for their financial risk management needs.
"We continue to see strong growth in our existing E-micro contracts with average daily volume up 115% ersus last year. The main reasons for this growth are CME Group’s highly liquid and transparent markets, better customer awareness of the benefits of counterparty risk mitigation and our recent shift to physical delivery, which makes it easier to offset risk with our standard FX futures contracts," Sammann added.
