Effective Sunday, October 30, 2011, for the trade date of Monday, October 31, 2011, Chicago Mercantile Exchange Inc. will offer clearing services for two new foreign exchange ("FX") pairs for traditional over-the-counter ("OTC") cash settlement non-deliverable forward ("NDF") transactions: U.S. Dollar ("USD") / Brazilian Real ("BRL") and U.S. Dollar / Chinese Renminbi ("RMB" or "CNY") spot, forward and swap contracts, also known as non-deliverable forwards (NDFs). CME already introduced clearing services for traditional OTC U.S. Dollar / Chilean Peso (USD/CLP) NDF transactions, beginning on Monday, April 18, 2011, as the first step of a broad product suite. Analogous to the OTC USD/CLP product that CME already offers for clearing, the new OTC USD/BRL and USD/CNY products are two more of the original list of 11 new OTC NDF-style products described in CME Group Special Executive Report, S-5954, dated Tuesday, September 27, 2011. The other nine cash settlement NDF products to be introduced at a later date are USD/Russian ruble (RUB), USD/Colombian peso (COP), USD/Peruvian sol (PEN), USD/Korean won (KRW), USD/Indian rupee (INR), USD/Malaysian ringgit (MYR), USD/Indonesian rupiah (IDR), USD/Taiwan dollar (TWD) and USD/Philippines peso (PHP).
For the full Special Executive Report, please click here (PDF).