CME Launches Currency Forwards In Move To Rival Interbank Market

EXCHANGES

The Chicago Mercantile Exchange (CME) launches its Deutsche mark currency forwards contract today, which is designed to give users another futures vehicle that replicates the interbank market (FX Week, April 11). Currency forwards will not tie up credit lines or accrue the capital charges typically associated with interbank forwards, say officials.

The contract, which CME officials envision will facilitate forward outright and FX swaps -- because it will be primarily traded as a spread agains