Options on CME Euroyen contracts provide a tool for hedging short-term risks on interest rate fluctuations on Euroyen, which are Japanese yen deposits outside of Japan.

Options on Euroyen can be thought of as insurance policies. They provide the opportunity to limit losses while maintaining the possibility of profiting from favorable changes in the futures price. The combination of options and futures, both risk management tools, can give market participants the leverage of futures and the more limited risk of options. Options offer flexibility, pre-determined risk and exposure to a different risk paradigm.

Euroyen TIBOR Futures Now on CME Globex
CME offers customers round-the-clock access via CME Globex to CME 3-month Euroyen TIBOR futures and options. The Euroyen market has become more volatile in recent months and this is a particularly favorable time to offer hedgers and traders even wider access to CME Euroyen via CME Globex.

In early March of 2006, the Bank of Japan ended its deflation fighting monetary policy which had been in place for five years and had kept its money market rates at nearly zero percent. The result has been one of the biggest upward moves in Japanese interest rates since the year 2000.

To learn more about CME Euroyen futures and options on CME Globex, 
click here.

CME Euroyen futures and options can be used to:

• Hedge Euroyen based loans, swaps and deposits
• Hedge yen long-term forward foreign exchange exposure
• Spread against other CME financial products, such as Eurodollar futures and options
• Create synthetic assets and liabilities via "strip" trading