CME To Launch Currency 'Forwards' That Expire Into Its 'Rolling Spot' Contracts
EXCHANGES
The Chicago Mercantile Exchange (CME) plans to add currency forwards to its range of FX offerings, pending Commodities Futures Trading Commission (CFTC) approval. The contracts are expected to provide a much cheaper way of conducting forward transactions because they carry much lower capital charges and risk can be laid off on the exchange, says a CME official.
The Merc's intent is for these contracts to trade as forward foreign exchange swaps. "Part of our plan all along when we did 'rolling
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