The International Securities Exchange (ISE) yesterday announced that ISE FX Options will begin trading on Tuesday, April 17. The SEC approved ISE’s proposal to launch foreign currency options on April 3.
Trading will initially take place in the following four currency pairs: USD/EUR (Symbol: EUI), USD/GBP (Symbol: BPX), USD/JPY (Symbol: YUK), and USD/CAD (Symbol: CDD).
David Krell, ISE’s president and CEO, says, “We are excited to announce the imminent launch of ISE FX Options, which will allow investors to gain foreign currency exposure through an exchange-traded product. We structured ISE FX Options using a straightforward convention that will enable current options investors to easily trade these products through their existing brokerage accounts.”
Timber Hill will serve as the Primary Market Maker (PMM) in all four of the currency pairs that will initially launch. In addition, Citigroup Derivatives Markets, Lehman Brothers, and Optiver US will act as Competitive Market Makers (CMMs®) in a variety of
ISE FX Options provide investors with exposure to rate movements in the global foreign currency markets and allow traders to express their views on the strength or weakness of the US dollar without the need to hold the actual foreign currency, the firm says.
As exchange-listed securities, ISE FX Options can be accessed through most major brokerage accounts that are approved for trading equity and index options. These products will be cash-settled.