About CME Euro FX/British Pound Options

Cross-rate futures provide a way for banks, corporations, money managers and individuals with the tools to manage the risks associated with currency rate fluctuation and to take advantage of profit opportunities stemming from changes in currency rates.

Cross-rate futures reflect the value of one currency in relation to another. CME® cross rate futures contracts are quoted as the minimum fluctuation currency per the trading unit currency, for example: Euro/Yen is quoted as yen per Euro, where the futures contract calls for delivery of 125,000 Euro (trading unit) and daily settlement variation is in yen (minimum fluctuation currency).

Currency cross-rate futures are physically delivered at expiration. Exercised options contracts are settled by the delivery of futures contracts.

CME Euro FX/British pound cross-rate futures and options on futures began trading in 1999. The futures contract size is 125,000 euro per contract. Trading can occur in .00005 British pounds per euro increments (6.25 British pounds). Also, trades can occur in .000025 British pounds per euro increments (3.125 British pounds) for CME Euro FX/British pounds futures intra-currency spreads executed electronically or on the trading floor, and for All-or-None transactions.

Minimum price fluctuations in options trading occur in .00005 British pounds per euro increments (6.25 British pounds); trades may also occur at .000025 (3.125 British pounds), .000075 (9.375 British pounds), .000125 (15.625 British pounds). Please see contract specifications for additional tick increments.