IntercontinentalExchange Futures U.S. (ICE) announced it will kick off a million currency unit version of 12 foreign exchange contracts, at Profit & Loss’ Forex Network Chicago.
Addressing the conference, which attracted over 400 registrations for the second successive year, Jeffrey Sprecher, CEO of ICE, told delegates: “The recent issue of Profit & Loss says there is no end in sight for the growth in the foreign exchange business. That is why I am here today, and why we are announcing this new currency product. We fundamentally believe that this is a great business.”
To be launched in November, the ICE Millions contracts are 10 times the size of ICE’s existing FX contracts, with which they are fully fungible. Contract prices will be quoted using over-the-counter market convention; which sources say are the most commonly used and will make hedging cash market exposure with OTC-style contracts easier.
Sprecher says: “This mirrors the cash markets and trading conventions, bringing it together with centralised clearing.”
The Millions contracts are designed to offer deep liquidity using professional market makers, and eliminate the need to roll daily cash positions.
The FX Millions pairs are euro-US dollar, euro-British pound, British pound-US dollar, euro-Canadian dollar, US dollar-Canadian dollar, euro-Japanese yen, US dollar-Japanese yen, euro-Swedish krona, US dollar-Swiss franc, euro-Swiss franc, US dollar-Swedish krona, and Australian dollar-US dollar.