KRMEX Announces Launch of FX Dollar Index and Futures
Provides More Precise, Convenient Trading of U.S. Dollar vs. Basket of Major Currencies
Online PR News – 15-June-2012 – Noida/Uttar Pradesh – Korea Mercantile Exchange (KRMEX) announced the launch of the new FX$ INDEX. The index will serve as the basis of a new futures contract. The contracts will be listed with, and subject to, the rules and regulations of KRMEX.
The new index combines six currency futures and represents the relative value of the U.S. dollar versus six major currencies. The currencies included are the Australian dollar, British pound, Canadian dollar, Euro, Japanese yen, and Swiss franc. The KRMEX FX$ INDEX futures contract will provide a more efficient way for global market participants to trade a basket of six major currencies against the U.S. dollar.
"The goal was to leverage the collective strengths of all currencies and create new index benchmarks across multiple asset classes, as well as develop customized index products," said Mr. Shin Chulsoon, KRMEX’s Managing Director of Equity Index Products and Services. "The launch of the new FX$ INDEX and the futures contract based on the index is the perfect intersection between index calculation and product development."
"This new currency index leverages the capabilities and KRMEX's distribution experience and leading role in currency futures," said Mr. Chulsoon. "The methodology as developed by Korea Mercantile Exchange includes currency-weighting of the index to reflect the economic realities as indicated by current feed data, which makes the index a suitable strategic hedging instrument for market participants. This project is one example of how our joint venture will work to bring differentiated index products to market."
"Market participants have long shown an interest in trading a basket of currencies against the U.S. dollar as a means of managing their risk," said Mr. Michael Haralds, KRMEX's Head of Department for FX and Interest Rate Products. "This new contract provides an easier way for customers to more precisely and conveniently lay off global currency risk with a single index. Additionally, portfolio managers can dynamically hedge their positions against the index using the six most liquid currency contracts traded at Korea Mercantile Exchange."
The http://www.krmex.org/ represents a basket of the most frequently traded KRMEX FX futures (Australian dollar, British pound, Canadian dollar, Euro FX, Japanese yen, and Swiss franc contracts) all traded against the U.S. dollar. The index is currency weighted and inversely quoted. When the U.S. dollar strengthens against the basket of currencies, the index goes down and when the dollar weakens against the basket of currencies, the index goes up.
As a fully automated exchange devoted to developing the derivatives market, the Korea Mercantile Exchange has the most outstanding candidates that fill positions within various sectors of the organization. Sectors include Finance and Financial Markets, Information Technology (IT), and Risk Management. The Korea Mercantile Exchange provides you with the opportunity to realize your ambitions in a dynamic and stimulating work environment, where teamwork, information sharing, accountability, and flexibility all contribute to our mutual success.