CME FX Options - Exercising the Right to Evolve

  • 30 Jan 2014
  • By CME Group and Craig Leveille
  • Topics: FX

Options Growth - A Key Area of Opportunity

REDISTRIBUTED WITH PERMISSION FROM THE EUROMONEY FX & TREASURY MANAGEMENT HANDBOOK 2014

There has been no shortage of major market influences and central bank actions affecting the FX markets in 2013.

Abenomics was one key driving force for the rise in Japanese yen trading, and the continuance of quantitative easing (QE) in the US has made hedgers and speculators realize that currency risk can no longer be an afterthought. Emerging market currencies like the Brazilian real, Indian rupee and South African rand have depreciated in value when talk of QE 'tapering' arose, only to be stabilized when Fed remarks indicated that the end of the program would be at least several months away.

But as many FX venues have seen dramatic decreases in trading volume, CME FX markets have witnessed significant growth in one key area - options. In fact, for 2013 our research shows CME FX options volume grew 46% year over year, with 85% executed electronically.

Learn more about the opportunities of CME FX options markets.

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