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CME To Unveil FX Volatility Contracts

CME Group will roll out a range of futures contracts next week that will enable investors to guard foreign exchange holdings against turmoil in global currency markets.

CME Group will roll out a range of futures contracts next week that will enable investors to guard foreign exchange holdings against turmoil in global currency markets, The Wall Street Journal reports. The FX VolContracts are linked to realize volatility in key currency pairs.

The first futures launched on CME’s electronic markets will be centered on the euro/U.S. dollar pairing. CME developed the forex volatility market through a licensing deal with the Volatility Exchange, a New York-based company specializing in building exchange-listed products linked to “realized volatility.”

Click here for the story from The Wall Street Journal.

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