The International Securities Exchange (ISE) today launched two new ISE FX OptionsSM currency pairs.
Options on the US dollar/Australian dollar (Symbol: AUX) and the US Dollar/Swiss franc will begin trading on 21 February. Timber Hill LLC will serve as Primary Market Maker for these new products.
“We are excited to build upon the successful launch of our first fourcurrency pairs by introducing two new currencies to the ISE FX Options product suite. Volume and open interest in our initial FX options have gained significant momentum, and we are pleased to meet growing customer demand for exposure to additional currency pairs,” says Kris Monaco, director of New Product Development, ISE.
Following the 17 April 2007 launch of ISE FX Options, open interest inthese products grew to 405,590 contracts on 31 January 2008, and average daily trading volume was a record 10,505 contracts last month.
ISE currently trades FX Options in four currency pairs: US dollar/euro, US dollar/British pound, US dollar/Japanese yen and US dollar/Canadian dollar.
ISE FX Options allow investors to express their views on the strength orweakness of the U.S. dollar relative to global currencies. 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 are cash-settled and have European style exercise.