New options on FX Futures

Due to growing volume in FX Futures against Rolling Spot Futures, Eurex decommissioned the existing options and introduced an enhanced range of new options which have CFTC approval.

The offering provides clients access to multiple pools of liquidity, whilst also providing central clearing solutions to optimize credit relationships. Trading Members can use the respective future as a hedge instrument and net their cash flows before going into final settlement.

Eurex is discontinuing the legacy FX Options and introducing new monthly options on the following 12 FX futures contracts listed on Eurex: EUR/AUD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/USD, GBP/USD, GBP/CHF, AUD/JPY, AUD/USD, NZD/USD, USD/CHF and USD/JPY.

New features, changes and improvements:

Central Clearing
Regulatory

Simulation start: 12 November 2020
Production start: 14 December 2020

Features

Central clearing

The offering provides clients access to multiple pools of liquidity whilst also providing central clearing solutions to optimize credit relationships.

Regulatory

These new products have CFTC approval which enables US participants to participate on the offering.

Circulars

Documentation

Contract specifications: Attachment 1 to Eurex Clearing Circular 095/20
Chapter II of the Clearing Conditions of Eurex Clearing AG : Attachment 2 to Eurex Clearing Circular 095/20
Transaction Fees amendments : Attachment 3 to Eurex Clearing Circular 095/20
Application form for new cash/collateral account: Attachment 4 to Eurex Clearing Circular 095/20

Items/ Participants Requirement

Feature/Enhancement	Details Action Item
Introduction of new options on FX Futures	The new products present modified contract specifications in relation to the existing ones, including more strike prices and more expiration dates. In addition, options on EURJPY are listed again (please note this currency pair was delisted in 2019). The new FX options are switching from cash settled options on spot to options on cash-settled futures. The new products are treated as plain vanilla products in the same way as before.	Trading and Clearing Members who have FX futures assigned already have automatically the new FX options products assigned on both clearing and trading level. New members to FX will have to sign up in order to trade these products. If a Clearing Member is unable to support clearing for these products, they will need to deactivate such products. Please note, that futures and options products will be in the same capacity group.

Feature/Enhancement

Details Action Item

Introduction of new options on FX Futures

The new products present modified contract specifications in relation to the existing ones, including more strike prices and more expiration dates. In addition, options on EURJPY are listed again (please note this currency pair was delisted in 2019).

The new FX options are switching from cash settled options on spot to options on cash-settled futures. The new products are treated as plain vanilla products in the same way as before.

Trading and Clearing Members who have FX futures assigned already have automatically the new FX options products assigned on both clearing and trading level.

New members to FX will have to sign up in order to trade these products. If a Clearing Member is unable to support clearing for these products, they will need to deactivate such products. Please note, that futures and options products will be in the same capacity group.

What's next?

Have a look at the Cross-Project-Calendar and know what’s coming next or is on the horizon and might have an impact you!

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FX Futures

Eurex Exchange offers FX Futures, Options on FX Futures and Rolling Spot Futures! Please visit our dedicated FX derivatives section for more information!

Find out more!

If you require further information, please contact us at client.services@eurex.com.

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