Chicago Mercantile Exchange (CME) has secured five banks as market makers for its CME Korean won currency futures contract, which was launched on September 18.
The banks are Development Bank of Singapore, Korea Development Bank, Korea Exchange Bank, Standard Chartered Bank and Woori Bank.
CF Wong, CME managing director for products and services, Asia says, “We are delighted that three of Korea’s top tier FX dealing banks, as well as two banks with a presence in multiple Asian markets, have agreed to serve as market makers.”
“The introduction of CME Korean Won futures and options contracts, and last month’s launch of the CME Chinese renminbi futures, represents a milestone in our long-term Asian growth strategy. With this contract launch, CME will offer contracts on nearly all the major currencies in the Asia Pacific region on a single trading platform,” he adds.
CME Korean Won futures and options on these futures are trading exclusively on the CME Globex electronic trading platform.
Early volumes have been light, although observers say that as with most futures contracts, it takes time for liquidity to build.