The FINANCIAL -- The NASDAQ
OMX Group, the world's largest exchange group, in
partnership with IKON GLOBAL MARKETS, a futures commission
merchant registered with the U.S. Commodity Futures Trading Commission
offering foreign exchange, futures and options, today will launch
NASDAQ OMX XAU/USD Spot Gold FuturesTM on the NASDAQ
OMX Futures Exchange.
According to The NASDAQ OMX Group, the contract will trade under the symbol "NAU" and seeks to simulate the over-the-counter spot gold market trading experience.
Instead of physical delivery, the new futures contracts will be cash-settled which gives retail investors an efficient and secure way to trade gold. A daily cost of carry is imbedded in the product with an innovative pay/collect feature called "swap points." The swap point feature will be based on data calculated by IKON. This product seeks to simulate the OTC spot market for gold and give greater transparency to the cost of carry element present in OTC gold transactions.
The contracts will be sized appropriately for portfolios of all types, and can be cash-settled with as little as one 10 Troy oz. contract. Ultimately, all investors will benefit from a product with unique features that allow for flexibility and trading strategies without concerns over delivery and forward rolling dates. The exchange-listed spot gold futures follow the construct of recent Dodd Frank legislation by providing central counterparty clearing and the client protections of The Options Clearing Corporation.
NASDAQ OMX will continue to partner with IKON on developing products that serve investor demand.
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