Bloomberg News

Nasdaq to Change ForEx Options to Mimic Spot Prices

April 17, 2012

Nasdaq OMX Group Inc. (NDAQ:US) said it’s planning to change the way it prices foreign-exchange options to more accurately reflect prices in over-the-counter markets.

The change, which will affect seven major currencies, is set for June 18, according to Dan Carrigan, associate vice president for new product development at the New York-based company. Strike prices for foreign-exchange options will align with the prices traders already view on the OTC markets, instead of the index model that has been used, he said.

“There’s been such an expansion of spot forex trading, we wanted to match what they’re seeing on the screen,” Carrigan said in a phone interview today.

The Australian dollar, U.K. pound, Canadian dollar, euro, Japanese yen, Swiss franc and New Zealand dollar are the seven currencies that will be part of the new pricing system.

To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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  • NDAQ
    (NASDAQ OMX Group Inc/The)
    • $39.11 USD
    • 0.51
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