NEW YORK, Feb. 8, 2012 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), the world's largest exchange group, in partnership with IKON GLOBAL MARKETS, Inc. (IKON), a futures commission merchant registered with the U.S. Commodity Futures Trading Commission (CFTC) offering foreign exchange, futures and options, today will launch NASDAQ OMX XAU/USD Spot Gold FuturesTM (patent pending) on the NASDAQ OMX Futures Exchange, Inc. (NFX). The contract will trade under the symbol "NAU" and seeks to simulate the over-the-counter (OTC) 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.
Diwakar Jagannath, Chief Executive Officer of IKON, said, "Responding swiftly to the needs of our clients is the cornerstone of our business and IKON is pleased to announce the launch of a ground breaking product to continue that tradition."
He added, "With the significant reforms brought about by the Dodd Frank Act, the structure of the OTC gold market has changed. By combining the components of a futures contract with the integrity of the OTC spot gold market, this is a natural progression of the customer protections and transparencies dictated by that legislation."
Eric Noll, Executive Vice President of Transaction Services U.S. and U.K. at NASDAQ OMX, said, "NASDAQ OMX and IKON are great partners because both firms develop unique products to add to investor portfolios and both firms see regulatory initiatives as an opportunity to create solutions for the financial services community."
He added, "We are thrilled to add spot gold futures to our suite of innovative products traded on NASDAQ OMX PHLX and the NASDAQ Future Exchange."
For more information about NASDAQ OMX XAU/USD Spot Gold Futures, please visit our website at: www.nasdaqtrader.com/NFX