A new tradable dollar index enters the scene: FXCM is collaborating with Dow Jones to provide an index that compares the greenback with the next four most traded currencies: the euro, pound, yen and the Aussie.
Yes, the Aussie is in and the Swissy is out. This reflects the trends in trading for quite a long time. I’ve written that the Aussie should become a major currency. This new index reflects it. The Dow Jones FXCM Dollar Index will be traded with the same characteristics as other currency pairs, margin trading, daily interest rate and 24/5 access.
By launching a dollar index, FXCM places itself as a standard setting player in the industry.
For more details, here’s the press release: 
New York, May 4, 2011—FXCM Inc. (NYSE: FXCM), an online provider of forex trading worldwide, has collaborated with Dow Jones Indexes, a leading full-service index provider, to develop the Dow Jones FXCM Dollar Index. FXCM will launch a tradable basket on the index.
The US dollar is the world’s foremost currency and the standard against which other currencies are measured. The Dow Jones FXCM Dollar Index Basket will offer traders the opportunity to track the US dollar with maximum liquidity while providing the advantages of trading on low spreads, trade on margin,* earn interest daily, and access the index 24 hours a day, five days a week.
This Dow Jones FXCM Dollar Index compares the US dollar to four of the world’s most liquid currencies: the euro, British pound, Aussie dollar, and Japanese yen. The Dow Jones FXCM Dollar Index Basket is intended to be more relevant, tradable, and easier to use than existing dollar indexes.
Commenting on the release Drew Niv, CEO of FXCM, said, “The Dow Jones FXCM Dollar Index was designed with the trader in mind. Its goal is to avoid outdated currency pair selection and esoteric methodology, using the most relevant currencies and straightforward design. Because of this, the index-linked basket can deliver maximum utility to the trader. FXCM is thrilled to bring an index product like this to our traders on FXCM platforms and has partnered with what we believe to be the best index provider to do so.”
Traders can begin trading the Dow Jones FXCM Dollar Index Basket by opening a demo account with FXCM.com.
*Trading on margin can both positively and negatively affect your trading experience as both profits and losses can be dramatically amplified.
Trading foreign exchange and CFDs on margin carries a high level of risk and may not be suitable for all. Read full disclaimer.
About FXCM, Inc.
FXCM Inc. is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers worldwide.
At the heart of FXCM’s client offering is No Dealing Desk forex trading. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution, and trading from real-time charts. FXCM’s UK subsidiary, Forex Capital Markets Limited, also offers CFDproducts with no re-quote trading and allows clients to trade forex, oil, gold, silver, and stock indices on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
All references to “FXCM” refer to FXCM, Inc. and its consolidated subsidiaries.
About Dow Jones Indexes
Dow Jones Indexes is a leading full-service index provider that develops, maintains, and licenses indexes for use as benchmarks and as the basis of investment products. Best known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes, as well as fixed-income and alternative indexes, including measures of hedge funds, commodities, and real estate. Dow Jones Indexes employs clear, unbiased, and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. and 10 percent by Dow Jones & Company Inc., aNews Corporation company (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV).
The Dow Jones FXCM Dollar Index is a joint product of Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC (“CME Indexes”), and Forex Capital Markets LLC including its affiliates and subsidiaries (“FXCM”). “Dow Jones®,” “Dow Jones Indexes,” “FXCM” and “Dow Jones FXCM Dollar Index” are service marks of Dow Jones Trademark Holdings LLC (“Dow Jones”) or FXCM, as the case may be, and have been licensed for use by CME Group Index Services LLC (“CME Indexes”). The Dow Jones FXCM Dollar Index is published pursuant to an agreement between CME Indexes and FXCM. The Dow Jones FXCM Dollar Index Basket is not sponsored, endorsed, sold, or promoted by Dow Jones, CME Indexes or their respective affiliates and Dow Jones, CME Indexes and their respective affiliates make no representation regarding the advisability of investing in such Index Basket.