CHICAGO and LONDON,
Sept. 9, 2020 /PRNewswire/
-- CME Group, the world's leading and most diverse
derivatives marketplace, today announced the launch of a new FX
Options Vol Converter tool. At a time when market
participants are looking for efficiencies and ways to lower their
cost to trade, this new service is the first-ever tool to price CME
Group's listed FX options liquidity in over-the-counter (OTC)
terms, helping foreign exchange traders to more easily monitor
price relationships, make more informed decisions across markets,
and ensure best execution for their trading strategies.
CME Group's listed markets have the largest central limit order
book for FX options. This tool takes the extensive price data that
is already functionally equivalent to OTC options, with alignments
in style, expiration time, and underlying price convergence and
creates a volatility grid by tenor and deltas for comparison
purposes.
"Our new FX Options Vol Converter calculates and converts our
listed FX options premiums, fixed strike data, rules, and formats
into an OTC-equivalent volatility surface, in OTC standard tenors,
deltas, and quote conventions – creating comparable pricing across
major options pairs," said Paul
Houston, Managing Director, Global Head of FX products at
CME Group. "Traders can quickly act upon a market opportunity with
a drilldown showing the product code, reference premium price,
volatility, delta and futures value to help identify their trading
opportunity."
Watch this video to see how the FX Options Vol Converter
tool makes it easy for a trader to monitor and potentially act upon
CME Group's extensive liquidity in FX options. For more information
on the methodology of the tool click here. For more information on
CME Group's FX markets, please click here.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing. With a range of pre- and post-trade products and
services underpinning the entire lifecycle of a trade, CME Group
also offers optimization and reconciliation services through
TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are
trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB,
and Traiana, Inc., respectively. Dow Jones, Dow Jones
Industrial Average, S&P 500 and S&P are service and/or
trademarks of Dow Jones Trademark Holdings LLC, Standard &
Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as
the case may be, and have been licensed for use by Chicago
Mercantile Exchange Inc. All other trademarks are the
property of their respective owners.
CME-G
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SOURCE CME Group