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.
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