CME Group has announced it is launching Wednesday Weekly FX options (Wednesday options) due to customer demand and growth in existing Weekly FX options, which expire on Friday.
Wednesday options will be available in premium quoted and volatility quoted European style options with a 2 p.m. CDT fix on five major currency pairs: AUD/USD; GBP/USD; CAD/USD; EUR/USD; JPY/USD. Wednesday options will be available for trading and clearing on October 30, 2017, pending regulatory approval.
Market participants trade weekly options to more precisely manage currency risk during the week. Existing FX Weekly options average daily volume reached a new record of 31,990 contracts in September 2017, which is up 76.6 percent compared to the same time period last year.
"Our clients want to further refine their exposure to mid-week announcements from the Federal Reserve, Bank of Canada and Reserve Bank of Australia's meetings before the end of this year," said Paul Houston, Global Head of FX at CME Group. "More broadly, as event-related trading activity continues to grow, they are looking for the additional granularity of these short-dated FX weekly options, as well as the ability to leverage capital efficiencies and spreading opportunities available in our markets."