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. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

CME comes back on option exercises

The article last week ( about some of the practices around option expiries and abandons on the exchanges prompted a solid response from the CME. While I was talking generally about exchange-traded options, the CME points out that it launched automatic exercises for in-the-money European FX options in its liquid contracts last September and did the same for its US options at the end of February.

Talking to some option players, it is evident that this degree of automation is impossible in the OTC market because there is no common trading platform. For the moment, the CME’s option volumes are dwarfed by what occurs in the OTC and will likely remain so because of the quirkiness of its contracts. However, the exchange clearly has a lot of benefits for participants, which is reflected by the strong growth it is seeing.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

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