ISE has established a new type of market maker membership class for quoting in ISE FX Options, and market makers were determined through a competitive auction process. A PMM trading license extends for three years and specifies certain market quality commitments. CMM trading licenses have a one-year term. ISE Electronic Access Members (EAMs) will be able to trade this innovative new product using their current memberships.
Sean Flynn, a trader at Timber Hill who oversaw the firm's bid for its FX PMM licenses, said, "Foreign exchange continues to grow in importance as an asset class, and we believe the FX market offers substantial opportunities for investors. Access to the FX market has historically been very limited for retail investors, but ISE FX Options will provide the retail segment with a straightforward vehicle to easily enter and trade the market. For these reasons, we believe ISE FX Options will be an attractive product for retail investors, and Timber Hill is committed to making quality markets from Day One."
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. As exchange-listed securities, ISE FX Options can be easily accessed through most major brokerage accounts that are approved for trading equity and index options. These products will be cash-settled and have European style exercise.
ISE FX Options are scheduled to launch early in the second quarter of 2007, pending SEC approval. For more information, please visit www.isefxoptions.com.
