Listed FX Options: Resources for Intermediaries.

Everything any broker needs to understand listed FX options, and the benefit they provide to all market participants

Listed FX options are increasingly a better proxy for the OTC market, as a result more traders can use listed FX options to hedge exposures and adapt to regulatory changes.

Attracted by the credit-agnostic liquidity and flexibility of our centrally cleared offering, including scope of currencies available; the granularity of weekly and monthly expiries on Mondays, Wednesdays, and Fridays; alignment with OTC market conventions in terms of style, value date, and expiration time; operational transparency and competitive fees.

 

Follow the volume

Use the CME FX Options Vol Converter to compare G5 listed FX options pricing, converted to OTC terms in one screen, for the first time to better understand the price relationship in an OTC- equivalent vol surface.

Monitor the newly launched CVOL™ index to track implied volatility based on simple variance on G5 pairs – a more representative measure of the market’s expectation of 30-day forward risk.

Subscribe to Macro Hive reports, delivered bi-weekly into your mailbox, for exclusive insights on the key FX macro themes to watch, FX volatility trends and select CME FX options.

By the numbers

$7.5B

Q2 2017-Q2 2020 average daily notional listed FX options

Six times

Less expensive than trading an equivalent bilateral position in OTC FX options*

50%

Reduction in trading fees for all large trades, electronic or block, with further discounts available

Two

Records broken for largest trade ever in FXO in past six months, now set at $2.9 billion

10 a.m. NY

Expiration time, aligned to OTC market conventions

$11/M

Rebate program available -
Upwards of $11/M on each trade

* Source: Greenwich Associates study: FX Options in the Age of Uncleared Margin Rules, 2019

KNOW THE FACTS

The One-Page Pitch – On the value of FX options

Use this short guide to FX Options, to know the value to you and your clients


Greenwich Associates on Total Cost Analysis and Uncleared Margin Rules, focused on FX options

How listed FX options could help buy-side firms save up to 70% on execution costs and reduce UMR funding costs by up to 86%.

GAIN GREATER INSIGHT

CME Listed FX Options: A Capital-Efficient, Low-Cost Solution

Authors:

Craig LeVeille
Executive Director, FX Products

Daniel Grombacher
Senior Director, FX Research & Product Development

Learn how FX options are a proxy for OTC options.

Read the full article or use the links below to go to a specific section:

Part 1: Understand FX options & compare to OTC FX spot options
Part 2: Anticipated impact of UMR
Part 3: Use cases for CME FX options
Part 4: Rules, tools, resources & mechanisms

SUBSCRIBE: THE FX REPORT

Each quarter, we publish The FX Report, which assembles all of the key news, views, and stats the broking community needs to know.

Resources

Learn

FX Options: Teach-in for Intermediaries

CME Group's instructor David Gibbs explores the benefits of listed FX options for your clients in this teach-in tailored to intermediaries and brokers.

WATCH NOW

Monitor the market with CME Direct, and dig in with QuikStrike Analytics

Monitor the market with our introduction to CME Direct and QuikStrike Analytics videos, including how to use CME Direct data, and how to use it to book blocks, create strategies, and get to know the built-in tools in more depth.

Analytics Browse more QuikStrike tools, including volumes, open interest tools, and heatmaps showing the most active options and strikes, and more.


How-To

How to use Request for Quote

Use RFQs

How to use Directed Request for Quote

Use DRFQ

How to book a block, reporting times and more

Use Blocks

How to use Committed Cross protocol w BPM

Use Request for Cross


Know

View or download over a year’s worth of listings and expiration dates across CME Group’s benchmark options, including yet to be listed weekly expiries

Expiration Calendar

View all the trading codes you need across Globex, Bloomberg, Fidessa, Refinitiv, and more

Product Codes

FEES

Log in to download the large trade program, available for all market participants, and created specifically for large trade risk transfer. By logging in, we will also contact you to discuss the fee incentives, designed specifically for brokers.

Contact us