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Contract History 

If you are interested in trading Swiss Franc futures it is helpful to become familiar with the history of the Swiss Franc market. Financial institutions, investment managers, corporations and private investors can use CME Swiss franc futures and options on futures to manage the risks associated with currency rate fluctuation and to take advantage of profit opportunities stemming from changes in currency rates.

Swiss francs are an attractive instrument that can add to portfolio diversification for both lenders and borrowers. When the new European currency the “euro” was introduced, the Swiss franc appreciated significantly against the euro in April to September 2000, and remains one of the world's strongest currencies, worth today around two-thirds of a euro.  The return on Swiss franc and capital market instruments exhibit both a low volatility and a low correlation with the return on foreign assets. One Swiss franc is typically divided into 100 centimes.

CME Swiss franc futures began trading in 1972, while options on futures trading became available in 1985. CME currently offers markets for trading CME Swiss francs futures and options on CME Globex as well as on its trading floor.

The CME Swiss franc contract is designed to reflect changes in the U.S. dollar value of the franc. Futures contracts are quoted in U.S. dollars per franc, and call for physical delivery at expiration. Physical delivery takes place on the third Wednesday of the contract month, in the country of issuance at a bank designated by the CME Clearing House. Exercised options on futures contracts are settled by the delivery of futures contracts.

The contract’s size is 125,000 Swiss francs per contract. Trading occurs in $.0001 per Swiss franc, or $12.50 per contract. CME Swiss franc futures trading may also occur in $.00005 per Swiss franc contract, equaling $6.25 per contract.

CME Swiss franc currency futures trade on six months in the March quarterly cycle, Mar, Jun, Sep, Dec.; and also trades CME British pound/Swiss Franc, CME Euro FX/Swiss franc, and CME Swiss franc/Japanese yen as part of cross rate currency futures. Options on futures contracts trade four months in the March cycle and two months not in the March cycle, plus four weekly expirations.

Click here to contact a commodities broker with experience the Swiss franc market.