Chicago Mercantile Exchange
The Chicago Mercantile Exchange announced earlier in the summer that following the expiry of the September 2010 contracts, e-micro currency futures contracts would change to being physically delivered:
CME FX will be migrating the E-micro Forex futures contracts from being cash settled to physically delivered. The December contract will be listed for trading on Sunday, July 25 (trade date Monday, July 26). This will enable active traders to carry larger positions in the E-micros and easily offset them with our standard size FX contracts – potentially generating more liquidity and tighter spreads in the E-micro Forex futures contracts.
Most of those September contracts expire today (USD/CAD does so tomorrow), and so from now on all e-micro currency futures contracts will involve physical delivery instead of cash settlement. CME explain the difference between cash settlement and physical delivery as follows:
Filed under Futures by