Futures and options on the Korean won began trading at the Chicago Mercantile Exchange in mid-September, with five banks selected to be the market makers for the new contracts.
DBS, the Korea Development Bank, the Kore a Exchange Bank, the Standard Chartered Bank, and Woori Bank represent some of Korea’s largest forex dealing banks and have a presence in multiple Asian markets.
“The introduction of won futures and options contracts and last month’s launch of Chinese renminbi futures represent a milestone in our long-term Asian growth strategy,” says CF Wong, the CME’s managing director for products and services. “With this contract launch, CME will offer contracts on nearly all the major currencies in the Asia Pacific region on a single trading platform.”
The won futures contract (symbol: KRW) will be worth 125 million won (about $130,000) and will trade virtually around the clock on Globex, the CME’s electronic platform. The tick size of $0.0000001 is worth $12.50. Won contracts will be cash-settled and listed for 13 consecutive months, plus two deferred quarterly cycles.
O n e - h u n d red eighty won contracts traded on Sept. 18, the first day of trading, and totals for the re m a i nder of the month varied only slightly. Average daily volume for the renminbi, which began trading A u g . 28, remained in single digits throughout September.
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