The FINEX Euro Index represents a geometric average that tracks the value of the euro against a basket of five major world currencies: U.S. dollar (USD); British pound (GBP); Japanese yen (JPY); Swiss franc (CHF), and Swedish krona (SEK). The ECX contracts will trade in the NYBOT currency pits on both the New York and Dublin trading floors alongside the USDX and NYBOT’s 29 currency pairs. Trading will begin with the futures contract on Friday, January 13, and the options start trading on the Dublin trading floor on Monday, January 16 (New York will be closed for the Martin Luther King holiday).
“The euro is the currency of the world’s second largest economic entity and the marketplace needs a tradable index which accurately gauges its value,” said Frederick W. Schoenhut, Chairman of the New York Board of Trade. “Our exchange has a history of innovation in currency products, and with the record year we just completed in our currency markets, the New York Board of Trade is the ideal place for the first Euro Index contracts to trade. Our FINEX Euro contracts are useful financial instruments for those who wish to hedge currency risk exposure or who want to take an investment position in the euro without exposing themselves to risks of trading a single currency pair.“
The FINEX Euro Index futures and options contracts will have a trading size of 1,000 euros times the index, and will be quoted in index point to two decimal places. Mirroring the USDX contracts, the trading months will be March, June, September and December, and trading times will be from 7:00 pm to 10:00 pm, and 2:00 am to 3:00 pm (all NY times). The Index will have a physical delivery and the final settlement value will be calculated to 3 decimal places (also identical to the USDX). To learn more about the new contract, please go to the FINEX Euro Index section on the NYBOT website at www.nybot.com.
The currency futures and options markets at NYBOT serve the entire FX market with 29 currency pairs in U.S. dollar-based, euro-based and other currency cross rate contracts. The New York Board of Trade is also the designated futures market and exclusive global marketplace for the U.S. Dollar Index futures and options contracts, which is computed using a trade-weighted geometric average of six currencies including the Euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and the Swiss franc. The USDX, which has been in existence since 1973, is the premier barometer of the U.S. dollar and has traded exclusively in the NYBOT currency markets since 1985. The NYBOT Dublin facility (FINEX Europe) has, since 1994, provided the Exchange with open outcry trading for its financial products in a European venue.
The New York Board of Trade (NYBOT) is New York’s original futures exchange, where the world trades food, fiber and financial products. For well over a century, the New York Board of Trade has provided reliability, integrity and security in a global marketplace for cocoa, coffee, cotton, ethanol, orange juice, wood pulp and sugar, as well as currency and index futures and options. Information about the New York Board of Trade can be found at www.nybot.com and www.nybotlive.com. To learn more about NYBOT Futures & Options for Kids, the Exchange’s non-profit group, please go to www.futuresandoptionsforkids.org.
