Monday, May 21, 2012
Financial Products News #2012 - 33
World Currency Options Transitioning to PHLX FOREX Options, Effective Monday, June 25, 2012
Data Feeds Impacted:
What you need to know:
What is changing?
As announced in Options Trader Alert #2012-24, at the request of the Options Clearing Corporation, effective Monday, June 25, 2012, PHLX will transition the current World Currency Options (WCOs) to FOREX Options. The difference between FOREX options and WCOs is that FOREX options, with the exception of the Japanese Yen, will be based on the foreign exchange spot price, instead of an index-price (spot price x 100).
How will this impact index data services?
Effective close of business Friday, June 22, 2012, NASDAQ OMX will cease dissemination of intraday index values, settlement prices and directory messages for the WCO's on the following NASDAQ OMX proprietary index data services:
- NASDAQ OMX Global Index Data Service (GIDS)
- NASDAQ OMX Global Index Watch (GIW)
Which WCO indexes will be removed from GIDS and GIW?
NASDAQ OMX will cease the calculation and dissemination of the following World Current Options:
|Instrument Name||Instrument Identifier||Settlement Identifier|
|British Pounds WCO||XDB||BFW|
|Canadian Dollars WCO||XDC||CBW|
|New Zealand WCO||XDZ||JQL|
|South African WCO||XEV||JRQ|
|South Korean WCO||XDW||JRW|
|Swiss Francs WCO||XDS||SFW|
|Turkish Lira WCO||XLR||LTK|
Why is the Japanese Yen not making the same conversion as the other currencies?
The current strike price convention is better suited for the Japanese Yen. Therefore, the strike prices will remain the same. Effective Monday, June 25, 2012, the Japanese Yen will be rebranded to the PHLX FOREX Options standard. The following symbol changes will be implemented for the Yen:
|Foreign Currency||Old WCO Symbol||Old WCO Settlement Symbol||New PHLX FOREX Symbol||New PHLX FOREX Settlement Symbol|
|Japanese Yen||XDN||JYW||FXJY||Unchanged "JYW"|
Will NASDAQ OMX provide an underlying spot value for the new FOREX options?
No, NASDAQ OMX will neither publish nor disseminate an underlying spot value for any of the new PHLX FOREX options. The spot values for the currencies are readily available in the market place.
Where can I find additional information?
- Refer to the PHLX FOREX FAQs on the NASDAQ OMX Trader® website.
- Visit the PHLX FOREX web page.
- For additional information of the new FOREX Options, please refer to Options Trader Alert #2012-24.
- Contact Transaction Services U.S. Market Sales at +1 800 846 0477.
- For questions about NASDAQ OMX Information, LLC data products, please contact NASDAQ OMX Global Data Products at +1 301 978 5307 or +45 3393 3366.
Subscribe to Email Alerts:
NASDAQ OMX is offering customers the ability to self select news delivery across various NASDAQ OMX markets. Create and maintain a profile for updating alert preferences and contact information. Visit the enrollment form on the NASDAQ Trader website and sign up today! Please note that if you choose to unsubscribe from an email list, you may no longer receive potentially critical emails from the NASDAQ Stock Market regarding NASDAQ's trading and data products, regulatory issues or marketplace initiatives.
About the NASDAQ OMX Group: The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.