Currently, CME offers European style options on its Euro FX and Japanese yen contracts. And now, CME will expand that offering to include European style options on the British pound, Canadian dollar and Swiss franc futures contracts. These options, if in-the-money, are automatically exercised at expiration. European style options are used by most options traders in the OTC FX markets. Because there is no risk of early exercise, they are often priced lower than American style options.

To enable customers to use a variety of trading strategies, American style options on CME FX futures will continue to trade both electronically and on the trading floor. However, unlike European style options on CME FX futures, American style options do not trade electronically during pit hours.

Why Trade Options on CME FX Futures?
Options on futures are among the most versatile risk management products offered by CME. They can be used to limit downside risk and maximize upside profits. As a result, they have become an increasingly popular hedging vehicle, and are used today by corporate treasurers, bankers, professional and retail FX traders, and equity portfolio managers throughout the world.

Easy Access and Liquid Markets
Trading options on CME FX futures has never been easier. The European style FX options trade via open outcry on the trading floor and electronically via CME Globex virtually around the clock throughout the trading week. As one of the largest FX trading platforms in the world and the largest regulated FX exchange, CME offers traders exposure to the approximately $48 billion average daily turnover in its underlying foreign exchange futures market.

With the guarantee of the CME Clearing, which backs every transaction, along with the speed, reliability and functionality of the CME Globex platform, CME provides unmatched value in the electronic trading world. With sub-second response times, deep liquidity, first-rate customer support, market integrity and a suite of trading products second to none, CME is the place to trade FX.

To view FREE real-time European style options prices, visit www.cme.com/e-quivalents.

For more information and to view contract specifications,  click here.

To read the full press release on the three new European style FX options,  click here.

European Style Options on these CME FX Futures:
CME British Pound Options*
CME Canadian Dollar Options*
CME Euro FX Options
CME Japanese Yen Options
CME Swiss Franc Options*

*European-Style Options launched July 30, 2006