CME Group, Dow Jones announce launch of FX dollar index and futures

By Jennifer Chiou

New York, June 8 - CME Group and Dow Jones Indexes announced the introduction of the Dow Jones CME FX dollar index, which will also be the basis of a new futures contract.

The futures contract is expected to launch in the third quarter.

According to a news release, the new index combines six currency futures and represents the relative value of the U.S. dollar versus six major currencies: the Australian dollar, British pound, Canadian dollar, euro, Japanese yen and the Swiss franc.

The companies said that the Dow Jones CME FX dollar 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.

"When we launched our joint venture with Dow Jones, the goal was to leverage the collective strengths of both companies and create new index benchmarks across multiple asset classes, as well as develop customized index products," Scot Warren, CME Group's managing director of equity index products and services, said in the release.

The index is currency weighted and inversely quoted, the companies noted, adding that when the U.S. dollar strengthens against the basket of currencies, the index goes down.

CME is a futures and options exchange based in Chicago. Dow Jones Indexes is part of CME Group Index Services LLC, a joint venture company 90% owned by CME Group Inc.

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