NEW YORK, October 28, 2008 – The International Securities Exchange (ISE) and NYSE Euronext (NYSE Euronext: NYX) announced today that they have entered into an agreement to license the right to list ISE FX Options® products on the NYSE Arca Options platform. This allows NYSE Arca Options to trade options on all currency pairs traded at ISE. The unique, dollar-based structure of ISE’s FX options creates an underlying value similar to traditional equity or index options and provides investors with a simple tool to trade their views on the strength of the U.S. dollar in relation to foreign currencies. NYSE Arca Options began trading options on the first of six currency pairs, the U.S. dollar/euro (Symbol: EUI), on Monday, October 27, 2008. The products are fungible with ISE’s existing FX options contracts.
NYSE Arca Options to list ISE FX Options
“We are very excited that, in partnership with NYSE Arca, we are extending the reach of FX options to a wider range of market participants,” said Kris Monaco, Director of New Product Development at ISE. “All investors who currently trade FX options at ISE will benefit from this collaboration as it allows us to attract more investors to the market, thereby deepening the available liquidity in these products.”
“Adding FX options to our platform demonstrates our commitment to providing investors with access to a diverse suite of options products that span multiple asset classes,” said Edward Boyle, Senior Vice President, NYSE Arca Options. “The innovative structure of these products will allow investors to easily apply the trading strategies they currently use for equity and index options to FX trading.”
In the coming weeks, NYSE Arca will list all FX options contracts traded at ISE: the U.S. dollar/euro (Symbol: EUI), the U.S. dollar/British pound (Symbol: BPX), the U.S. dollar/Japanese yen (Symbol: YUK), the U.S. dollar/Canadian dollar (Symbol: CDD), the U.S. dollar/Australian dollar (Symbol: AUX) and the U.S. Dollar/Swiss franc (Symbol: SFC ).
ISE calculates the underlying values for FX options using data supplied to it through an agreement with Reuters and disseminates it through several leading market data vendors and financial websites. As exchange-listed securities, FX options can be easily accessed through most major brokerage accounts that are approved for trading equity and index options. These products are cash settled and have European style exercise.
The International Securities Exchange operates a family of fully electronic trading platforms, creating efficient markets through innovative technology and market structure. ISE’s markets portfolio consists of an options exchange and a stock exchange. As the world’s largest equity options trading venue, ISE offers options on equities, ETFs, indexes, and FX. The ISE Stock Exchange trades approximately 6,000 products, and is the only fully electronic equities platform that provides the opportunity for continuous price improvement through the interaction of its non-displayed liquidity pool, MidPoint Match, and its displayed stock market. ISE Alternative Markets is scheduled to launch in 2008 and will offer a parimutuel trading platform for derivatives auctions. To complement its markets and enable investors to trade smarter, ISE creates innovative new products including a portfolio of proprietary indexes and enhanced market data for sophisticated investors.
ISE is a wholly owned subsidiary of Eurex, a leading global derivatives exchange. Eurex itself is jointly owned by Deutsche Börse AG (Ticker: DB1) and SIX Swiss Exchange AG. Together, Eurex and ISE are the global market leader in individual equity and equity index derivatives.
About NYSE Euronext
NYSE Euronext (NYX) is the world’s leading, most liquid and diverse exchange group. It offers a broad and growing array of financial products and services in cash equities, futures, options, exchange-traded products, bonds, market data, and commercial technology solutions, all designed to meet the evolving needs of issuers, investors and financial institutions. Spanning multiple asset classes and six countries, NYSE Euronext’s exchanges include the New York Stock Exchange, Liffe, Euronext and NYSE Arca. With more than 6,500 listed issues, more than any other exchange group, trading on NYSE Euronext’s equity markets represents more than one-third of the world's cash equities volume. NYSE Euronext also manages the leading European derivatives exchange by value of trading. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit www.nyx.com.
Contact: Molly H. McGregor/International Securities Exchange
Contact: Eric Ryan/NYSE Euronext