CME Group to Launch FX Spot+ to Connect OTC and Futures Liquidity

Rhea-AI Summary

CME Group (CME) to Launch FX Spot+ to Connect OTC and Futures Liquidity

Positive

• Innovative offering to connect cash market participants with FX futures liquidity
• Expected availability for client testing in the second half of 2024
• Enhanced access to OTC FX liquidity for FX futures market users
• Leverages FX Link to connect liquidity between OTC spot FX and CME Group's FX futures
• Accessible via CME Globex network, including EBS Market Globex connectivity
• Increased access, transparency, and trading opportunities across spot FX and FX futures markets

Negative

• None.

CHICAGO and LONDON, Dec. 6, 2023 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it will launch CME FX Spot+, a new, all-to-all spot FX marketplace that will connect cash market participants with the company's FX futures liquidity. The offering is expected to be made available for client testing during the second half of 2024.

For the first time, spot FX participants will be able to access CME FX futures liquidity in OTC spot terms within an open, transparent, central limit order book environment, while FX futures market users will see expanded access to OTC FX liquidity. CME FX Spot+ leverages FX Link, a liquid and tradable spread between OTC spot FX and CME Group's FX futures, to connect liquidity between the two trading environments.

The new offering will be accessible via the CME Globex network, including via existing EBS Market Globex connectivity which will provide the global EBS spot FX customer base with seamless access to this unique and complementary new liquidity pool.

"Alongside our FX futures and our EBS offerings, this new spot FX marketplace - and its unique connection with our FX futures liquidity – is the latest example of how having futures and spot markets at CME Group can support accessible, centralized liquidity within the highly fragmented FX market," said Paul Houston, Global Head of FX Products, CME Group. "CME FX Spot+ will increase access, transparency and trading opportunities across spot FX and FX futures markets, which will benefit market participants across both venues."

For more information, visit cmegroup.com/markets/fx/introducing-cme-fx-spot-plus.html

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

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SOURCE CME Group

FAQ

What is CME Group (CME) announcing?

CME Group announced the launch of CME FX Spot+, a new spot FX marketplace to connect cash market participants with FX futures liquidity.

When will the offering be available for client testing?

The offering is expected to be made available for client testing during the second half of 2024.

How will CME FX Spot+ benefit spot FX participants?

Spot FX participants will be able to access CME FX futures liquidity in OTC spot terms within an open, transparent, central limit order book environment.

How will FX futures market users benefit from CME FX Spot+?

FX futures market users will see expanded access to OTC FX liquidity through CME FX Spot+.

How can the new offering be accessed?

The new offering will be accessible via the CME Globex network, including via existing EBS Market Globex connectivity.