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LONDON LORD MAYOR TO USHER IN CHICAGO TRADING OF LONDON EQUITIES

 LONDON LORD MAYOR TO USHER IN CHICAGO TRADING OF LONDON EQUITIES
 CHICAGO, Oct. 6 /PRNewswire/ -- When the Lord Mayor of London, Sir Brian Jenkins, rings the ceremonial trading floor bell to signal the start of trading of FT-SE derivatives on Chicago's exchanges Oct. 15, U.S. investors will, for the first time, be able to hedge their portfolios or gain exposure to the leading U.K. market index with the convenience of U.S. trading hours and minimal risk of currency price fluctuation.
 Another first for the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE), who are offering futures and futures options, and cash-settled index options, respectively, the move is expected to enhance the already sizeable U.S. market for British stocks.
 Based on the market values of the largest 100 U.K. stocks traded on the London Stock Exchange, the FT-SE 100 Index is the established equity index benchmark for the United Kingdom and is capitalization weighted. The primary market for trading FT-SE 100 Index futures and options is the London International Financial Futures and Options Exchange (LIFFE).
 "The CME is honored that the Honorable Lord Mayor of London could be here to usher in trading of the leading index product from Great Britain," says John F. "Jack" Sandner, Chairman of the CME. "The addition of FT-SE 100 complements our international index product line and solidifies our position as the world leader in futures on stock index products."
 According to CBOE Chairman and CEO Duke Chapman, "The joint launch of FT-SE 100 Index options, futures and futures-options gives domestic investors an opportunity to take a position in the U.K. market -- the third largest equity market in the world -- during regular U.S. trading hours. Our joint launch also offers dollar-denominated contracts for domestic participants."
 Herschel Post, Deputy Chairman of the London Stock Exchange and CEO of Shearson Lehman Asset Management, Ltd., says "The issue of U.S. traded and listed derivatives on the FT-SE 100 Index is further indication of the increased importance of the U.K. market to U.S. institutional investors. As U.S. investors increasingly diversify their portfolios outside of their home market, we are delighted that derivative products on the FT-SE 100 provide them with the necessary flexibility to control risk in their European portfolios."
 CME President and CEO William J. Brodsky says that the FT-SE 100 contract will be included in the cross-margining program that has existed between the CME and the Options Clearing Corp. (which clears CBOE trades) since 1989. Cross-margining enables market makers and member firms trading proprietary accounts to pay the net difference in good-faith deposits for maintaining off-setting positions on both exchanges.
 "This is the first time since we created a cross-margining mechanism that we've simultaneously started a new contract with the CBOE," Brodsky says. "This should help us foster liquidity in this contract from the very beginning."
 Adds CBOE Vice Chairman William Floersch, "Trading on each exchange will complement the other, enhancing volume and trading opportunities domestically and abroad."
 The FT-SE 100 Index is computed and distributed by the London Stock Exchange, and futures and options on the index have been traded in London since the index was introduced in 1984. Trading hours for the new CME and CBOE contracts will overlap with trading hours at LIFFE.
 The CME is the world's leading futures exchange in terms of value of contracts traded, open interest and membership prices. It is also the leading index futures exchange having successfully launched the S&P 500 Stock Index, Nikkei 225 Japanese Stock Averages, the S&P MidCap 400 Index and the GSCI (Goldman Sachs Commodity Index).
 CBOE, regulated by the Securities and Exchange Commission, is the world's leading equity options marketplace. Accounting for 92 percent of the U.S. index options market share in 1991, CBOE lists options on the S&P 100 and 500 stock indexes, as well as options on more than 340 stocks and short and long-term interest rates. CBOE will celebrate its 20th anniversary in 1993.
 EDITOR'S NOTE: NEWS ADVISORY:
 Please join a CME/CBOE Media Roundtable, introducing:
 FT-SE 100 Share Index
 (Futures, Futures Options and Cash-Settled Index Options)
 9:25 a.m. central time (3:25 p.m. London time)
 Tuesday, Oct. 13
 Dial: 312-399-1701
 For the first time ever, U.S. investors will be able to hedge their portfolios or gain exposure to the leading U.K. market index with the convenience of U.S. trading hours and minimal risk of currency price fluctuations.
 New, dollar-denominated FT-SE 100 derivative products will be introduced simultaneously by the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) on Oct. 15 and are expected to provide your audience members with an economical and efficient tool for investing or hedging in international equities.
 For your convenience, industry experts will provide a concise 15 minute overview of these new contracts during this teleconference program. A question and answer session will follow.
 TO RESERVE one of a limited number of phone lines for this program, please call Mary Hearn, 312-930-8212; or FAX your request, including your name, organization's name, phone and FAX number to: FT-SE Media Roundtable, 312-930-8219.
 -0- 10/6/92
 /CONTACT: Patricia Campbell, 312-786-7927; or Bonnie Greenberg, 312-786-7393, both of the CBOE; or Andrew Yemma, 312-930-3434; Mary Hearn, 312-930-8212, both of the CME; or Gill Ackers, 071-797-3634; or Louise Phillips, 071-797-3634, both of the LSE/ CO: Chicago Board Options Exchange; Chicago Mercantile Exchange ST: Illinois IN: SU:


SB -- NY067 -- 7158 10/06/92 14:41 EDT
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Date:Oct 6, 1992
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