The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

FX news: New dollar index from CME/DJ - a threat to DXY?

Up until now the only dollar index future with tradable liquidity has been the US dollar index future (DXY) traded on the Intercontinental Exchange (ICE). This may now change with the announcement of the Dow Jones CME FX$Index.

The index is expected to launch in the third quarter of 2010, which I imagine means by Labor Day settlement, and will be tradable as a future on the Chicago Mercantile Exchange. The index represents a basket of the most traded CME FX futures (AUD, GBP, CAD, EUR, JPY and CHF) all traded against the USD. The basket weightings are fixed, having been weighted to world trade and rounded for ease of hedging; specifically, 10 FX$Index contracts are equivalent to a basket of currency futures comprising of 4 EUR, 2 GBP, 2 JPY, 1 AUD, 1 CAD, and 1 CHF contracts. The index will be calculated as the basket value divided by USD10,000 and inversely quoted: when USD strengthens against the basket, the index will go down and when the dollar weakens, the index will go up.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree