FX options: Access the capital efficiencies and liquidity of listed markets

With Phase 5 of Uncleared Margin Rules now in effect, market participants are finding another reason to adopt listed FX options.

Despite near historic lows in FX volatilities, Q3 2021 average daily volume of listed options is up 16.5% year-over-year, with open interest growing 41.3% and record OI in Canadian dollar and Australian dollar options. Learn more about CME Group listed FX options

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 to follow, and select CME FX options strategies to fit the opportunity.

In the news

With the recent onset of Phase 5 of UMR and Phase 6 only 12 months away, it is no wonder we are seeing continued growth of both block trades and large trades, further strengthening CME as a venue of choice for institutional clients looking to execute sizeable positions in FX options, as more participants turn to CME listed FX options for effective risk management.

Get involved: 50% discount on fees for large trades

NEW CREATION OF ‘BIG TICKET’ DISCOUNTS

Trading FX options at CME Group has never been more capital-efficient or as compelling – with a 50% fee reduction on all large trades however executed – electronically via Globex or bilaterally via Blocks.

LARGE TRADE: DEFINED

250 contracts: EUR/USD, JPY/USD, GBP/USD, AUD/USD, CAD/USD, CHF/USD

50 contracts: MXN/USD, NZD/USD, BRL/USD, RUB/USD, ZAR/USD, EUR/GBP, EUR/JPY, EUR/CHF

20 contracts: KRW/USD, PLN/USD, HUF/USD, HUF/EUR, ILS/USD, CZK/USD, CZK/EUR, CNY/EUR, CNY/USD

LOG IN TO SEE ALL THE DETAILS OF THE LARGE TRADE PROGRAM; know the rules, how to get involved, and how to make the most of the liquidity.

Know your large trade sizes and see the block trading rules: Large trades are defined as those at or above the block level but apply to all execution types – Globex or block. If you trade via blocks, it is important to follow the rules.

Find your block market maker: Choose who to partner with, based on time zone and currencies facilitated.

Product enhancements driving activity, more choice along the term structure, and more transparency on the vol surface

ADDITION OF MORE STRIKES

More quarter strikes for more choice in deltas and premiums made for more granular execution.

More maturities in front

More expiries available with additional weekly Monday, Wednesday, and Friday expiries for G5 currencies. Traded around the clock, made for managing short term risk precisely – and now accounting for 30% of all volume.

more MATURITIES in back

More monthly maturities added to the majors, providing a full one-year term structure, made for sequential hedging and a more capital-efficient solution along the more costly end of the curve, and now expanded to second year quarterlies in EUR and JPY.

aligned to the 10 a.m. ny cut

More convenience for traders around the world, as our options expire at the primary 10 a.m. NY OTC convention.

Access the market: Use our network of partners or our dedicated front-end

Platforms include: Bloomberg  |  CQG  |  Fidessa  |  Refinitiv

View vendor trading codes for our FX options

CME Direct: Access FX options directly

Trade and follow market data in real time on CME Direct ‒ our fast, secure, and highly configurable trading front-end. Made for block execution certainty and compliance, with more convenience.

Tap into solutions across the trading lifecycle:

  • Build strategies
  • Options analytics
  • Integrated workflow
  • Real-time Excel

Get connected at cmegroup.com/direct

Insights: White paper

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

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

Understand the evolving themes in our FX options complex: Get the FX Report, straight to your inbox

 

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