The International Securities Exchange (ISE) and NYSE Euronext have entered into an agreement to license the right to list ISE FX Options products on the NYSE Arca Options platform.
This will allow NYSE Arca Options to trade options on all currency pairs traded on ISE. The structure of ISE’s FX options creates an underlying value similar to traditional equity or index options and provides investors with a simple tool to trade their views on the strength of the US dollar in relation to foreign currencies.
NYSE Arca Options began trading options on the first of six currency pairs, the US dollar/euro, on 27 October. The products are fungible with ISE’s existing FX options contracts.
“We are very excited that in partnership with NYSE Arca, we are extending the reach of FX options to a wider range of market participants,” said Kris Monaco, director, new product development, ISE. “All investors who currently trade FX options at ISE will benefit from this collaboration as it allows us to attract more investors to the market, thereby deepening the available liquidity in these products.”
“The structure of these products will allow investors to easily apply the trading strategies they currently use for equity and index options to FX trading,” added Edward Boyle, senior vice president, NYSE Arca Options. ”In the coming weeks, NYSE Arca will list all FX options contracts traded at ISE.”