The Tel Aviv Stock Exchange will also offer weekly futures contracts on the dollar-shekel exchange rate.
The TASE says that the new options will suit a wide range of investors, among them those seeking to hedge short-term exchange rate risk, with low margin requirements. The new options will allow additional expiry dates for dollar-shekel options, thus giving a clearer picture of traders’ expectations of fluctuations in the dollar-shekel rate over time.
The weekly options will be similar in structure to the existing monthly options. They will be European style, in multiples of $10,000, exercisable at the then prevailing representative dollar-shekel exchange rate published by the Bank of Israel. The options will start to be traded on Tuesdays, and will expire on the Wednesday of the following week.
In addition to the weekly dollar-shekel options, the TASE will also launch weekly futures contracts on the dollar-shekel exchange rate.
Robby Goldenberg, head of the TASE Trading, Derivatives and Indices Department, said, “Trading in weekly derivatives on the dollar-shekel exchange rate is another step in broadening the offering of derivatives traded on the Tel Aviv Stock Exchange. The new derivatives will expand investment and hedging possibilities for all kinds of market players, and they fit into the trend of growth in trading volumes in dollar-shekel options, in which daily volumes have exceeded 50,000 in 2016.”