CBOE’s Hotspot executes first anonymous FX forwards trade

Hotspot platform trades outright deliverable forwards on an anonymous central-limit order book.

CBOE’s Hotspot trading platform has completed its first anonymous outright deliverable FX forward transaction.

Paul Millward, head of product strategy, and Paul Reidy, head of technology for Hotspot, completed the one-month EUR-USD trade of $100,000 notional value. 

The Hotspot FX platform said it is the first to offer outright deliverable forwards on an anonymous central-limit order book.

CBOE said the platform allows brokers to post passive quotes to expand activity from participants who are able to trade without being forced to cross the bid-offer spread.

Bryan Harkins, head of US equities and global FX at CBOE, explained when Hotspot was initially acquired, the exchange made a public commitment to growing the platform and add further functionality.

“We also made clear any enhancements or expansions would fit our overall ethos of improving market structure for all participants, without compromising the unique dynamics of the FX market,” he said.

CBOE also added non-deliverable forwards (NDFs) are to be listed on Hotspot’s swap execution facility (SEF) in the coming weeks, following the CFTC’s filing of a revised form SEF in March this year.

Hotspot traded average daily notional value of $28.8 billion in spot FX in the first quarter this year, up 9% from the quarter prior. 

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