CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of CME Bloomberg Dollar Spot Index futures. The futures contract will be available for trading on the CME Globex electronic trading platform effective April 4, 2016, pending all relevant regulatory review periods. This contract will be listed with and subject to the rules and regulations of Chicago Mercantile Exchange.
The new contract tracks the performance of a basket of 10 developed and emerging market currencies versus the U.S. dollar: Euro, Japanese Yen, Canadian Dollar, Mexican Peso, British Pound, Australian Dollar, Swiss Franc, South Korean Won, Offshore Chinese Renminbi and Brazilian Real.
“In this time of heightened geopolitical uncertainty, this contract helps meet increasing customer demand for FX products as a tool to effectively manage global risk,” said Craig LeVeille, CME Group Executive Director FX Products. “We’re pleased to collaborate with Bloomberg to offer a futures contract that provides margin offsets against our existing deeply liquid FX products and a better measure of the U.S. dollar vs. the global market.”
“Corporations, traders and investors now have a new tool to efficiently manage currency volatility,” said Alan Campbell, Bloomberg Index Product Manager. “A CME Group futures contract on the Bloomberg Dollar Spot Index will better capture the value of the U.S. dollar by using a basket of developed and emerging market currencies.”
“We believe the Bloomberg Dollar Spot Index is a representative benchmark for investors to access, trade or invest in the value of the greenback relative to major global currencies,” said Ben Slavin, WisdomTree Head of Product & Business Development. “Furthermore, we are pleased to see the launch of this CME Group futures contract, a welcome addition to accessing the tradability of an existing valuable index.”
CME Bloomberg Dollar Spot Index futures will be cash-settled to offer operational ease for clearing members and clients with a U.S. Dollar cash settlement. The underlying index and the futures contract will reconstitute annually to reflect global trading activity with the U.S. and associated global foreign exchange volume. These two factors determine the composition of the index:
- A currency’s relative weight in the global FX market as measured by the BIS Triennial Central Bank Survey; and,
- Each country’s relative importance as measured by their cross border trade with the U.S.
Real-time index analysis is available to all Bloomberg Professional service subscribers at BDXY<GO> and more information on the methodology can be found here: http://www.bloombergindices.com/currency.
For more information on CME Bloomberg Dollar Spot Index Futures, please visit cmegroup.com/BDI.
About CME Group
As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform, its trading facilities in New York and Chicago, and through its London-based CME Europe derivatives exchange. CME Group also operates one of the world’s leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to more than 327,000 subscribers globally. For more information, visit www.bloomberg.com/company or request a demo.
The Bloomberg Professional service is owned and distributed by Bloomberg Finance L.P. and its affiliates.