NYSE Euronext has extended its futures and options offering, adding the GBP/USD and GBP/EUR currency pairs on its AEX exchange in Amsterdam.
Until now, NYSE Euronext had only offered EUR/USD options and futures. It said the new products would help participants seeking to invest in currency derivatives without being exposed to physical delivery.
Portfolios with UK or US shares can use the contracts as a base for a currency risk hedge as they are cash settled.
The GBP/EUR options have an underlying value of £10,000 with prices and premiums exercised in euros. GBP/USD options also carry an underlying value of £10,000, but with exercise prices and premiums in US dollars. Lifetimes will range from one to 12 months.
Roland Bellegard, group executive vice president and head of European execution at NYSE Euronext, said: “As currency options are an attractive, tradable instrument for market participants we look forward to expanding our foreign exchange franchise into other currency pairs in the future, providing more opportunities for investors to implement their trading strategies.”