The Swiss Franc, created in 1798 by Swiss cantons, was made the official monetary unit of Switzerland and Lichtenstein in 1859 after the issue of money was restricted to the federal government. Considered as one of the world’s strongest currencies, the Swiss Franc is popular for its low volatility and its low correlation with returns on foreign assets. Historically considered a ‘safe-haven currency’, the Swiss Franc has almost zero inflation. As the sixth most traded currency in the market, the Swiss banknotes have all four national languages printed on them including: German, French, Romansh, and Italian.
|Swiss Franc Contract Specifications|
|Contract Size||125,000 Swiss francs|
|Trading Hours||CME Globex: Sundays: 5:00pm – 4:00pm CT next day.
Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT.
|CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm|
|Minimum Price Fluctuation||$.0001 per Swiss Franc increments ($12.50/contract). $.00005 per Swiss Franc increments ($6.25/contract) for CHF/USD futures intra-currency spreads executed electronically.|
|Product Code||CME Globex: 6S|
|CME ClearPort: E1|
|Listed Contracts||Twenty months in the March quarterly cycle (Mar, Jun, Sep, Dec)|
|Last Trade Date||9:16 a.m. Central Time (CT) on the second business day immediately preceding the third Wednesday of the contract month (usually Monday).|
|Settlement Procedures||Physical Delivery – CHF/USD Futures Settlement Procedures|
|Position Accountability||10,000 contracts|
|Block Trade Eligibility||Yes.|
|Block Minimum||100 Contracts|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CME.|
|Source: CME Group|
Swiss Franc Facts
Swiss franc futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.
Currency rates are determined by a one base currency quoted in relation to a different currency. Major currencies that are traded are floating. Central bank monetary policies can affect the value of currency. The Swiss National Bank regulates monetary policy for its currency. For instance, low interest rates dictated as policy can be bearish for currency value because new money is being pumped into the market. This is unappealing to foreign investors because returns yield those low interest rates. In contrast, high interest rates set as policy are bullish and appealing to foreign investors because of high interest yields from the returns. Currency values can be also be affected by the nation’s current account balance. An excess or influx in the balance is considered to be bullish, while a deficit or drainage is considered to be bearish. Economic stability and investment in the country also help strengthen currency values because international investors are likely to buy into that country’s favorable markets.
Last updated September 2015
Recent Posts on the Swiss Franc
- Trade Spotlight: Futures (Swiss Franc) (3/13/2017) - There is a trade opportunity based on a potential Trend Line breakout in the Swiss Franc futures market.
- Market Spotlight: Swiss Franc (11/5/2015) - The Swiss Franc, created in 1798 by Swiss cantons, was made the official monetary unit of Switzerland and Lichtenstein in 1859 after the issue of money was restricted to the federal government.
- 12/10 Pre-Dawn Update (12/10/2014) - It's Webinar Wednesday! Pull up a stool and join us at the CHART WATCH! webinar this afternoon at 2:00p (cst) http://www.danielstrading.com/webinar/chart-watch-with-the-cullen-outlook/