CME Group Announces Launch of Yen-Denominated Nikkei 225 Options Options Will Reference Osaka Securities Exchange's Nikkei 225 Futures Contract
CHICAGO and TOKYO, Nov. 7, 2013 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced the launch of options on CME's Yen-denominated Nikkei Stock Average futures. CME Group will reference the Osaka Security Exchange's (OSE) Nikkei 225 (Yen) Futures contract in connection with these options contracts. These options contracts are listed with, and subject to, the rules and regulations of CME, and will be available for trading on CME Globex from January 13, 2014, pending CFTC review.
"We are pleased to build on our strong relationship with OSE to offer customers more risk management and trading opportunities with leading global equity index benchmarks," said Bryan Durkin, Chief Operating Officer, CME Group. "With these options on the Yen-denominated Nikkei 225 Futures contracts now being offered on CME Globex, further adding to our deeply liquid equity index product suite, our customers will be able to realize more trading opportunities, greater capital savings and operational efficiencies."
"The launch of these options is one key output from the ongoing collaboration between OSE (now a part of Japan Exchange Group), and CME Group, and our customers now have greater trading access and convenience," said Hiromi Yamaji, President and CEO, Osaka Securities Exchange. "Having OSE's very active and liquid night session of Nikkei 225 Futures and Options parallel to CME Group's new Yen-denominated Nikkei 225 Options during US core trading hours should also further improve the efficiency in managing risk in the US time zones."
CME Group's new options contracts will be available in American-style and European-style options. The American-style options will be offered in two months in the March Quarterly Cycle, and the European-style options will be offered in two serial months. For European-style options, CME will reference OSE's Nikkei 225 (Yen) Futures contract prices to make in-the-money and exercise determinations at option expiry. Trading on CME Globex will be available Monday through Friday from 5.00pm (prior day) Chicago time to 4.15pm the following day. For more information, please click on this link: www.cmegroup.com/nikkei225.
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world's leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
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Futures and options trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract's value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade. All references to options refer to options on futures.
Osaka Securities Exchange Co., Ltd. (OSE) is a subsidiary exchange of Japan Exchange Group Inc., a holding company created by the consolidation of OSE and Tokyo Stock Exchange Group Inc. (TSE) in January 2013. OSE is the largest derivatives exchange in Japan offering a wide variety of products globally including its flagship Nikkei 225 Futures and Options. TSE's derivatives markets including Futures and Options of TOPIX and JGB plan to be integrated into OSE in March 2014.
SOURCE CME Group