CME Group Forex E-Micros

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CME Group announced plans in February 2009 to launch a series of smaller Foreign Exchange (FX) contracts called Forex E-Micros. The contracts are designed to attract retail traders and investors to the CME Group's FX products. They are scheduled to launch in the first quarter of 2009.

The Forex E-micro contracts will be one-tenth the size of the corresponding FX contracts, making them accessible to active individual traders, small Commodity Trading Advisers (CTAs), and Small Medium Enterprises (SMEs). They will be traded exclusively on the Globex electronic trading platform.

The contracts will be quoted in interbank or "over the counter" (OTC) terms. Contracts will be launched in the following six currency pairs: EUR/USD, GBP/USD, AUD/USD, USD/JPY, USD/CHF and USD/CAD.

All Forex E-micro contracts will be cash-settled and EUR/USD, GBP/USD and AUD/USD contracts will be fully fungible with CME Group's full-sized FX contracts, and margins and exchange fees will be scaled down in proportion with the full-sized versions at roughly one-tenth of the full cost. USD/JPY, USD/CHF and USD/CAD all have a high percentage of margin offset with the larger CME Group FX contracts.[1]

For contract specs, see:

References

  1. CME Group to Launch Forex E-Micro Contracts. CME Group.