CME Group is set to combine its two non-deliverable forward (NDF) liquidity pools on the EBS Market platform onto a single trading venue in October next year, subject to regulatory approval.
The move will bring market participants across regulatory jurisdictions into a unified global trading environment, enhancing market efficiency and improving EBS’ role as a source of centralised liquidity and price discovery in NDFs.
“Amid continued fragmentation and rising complexity within the global FX market, the need for a unified, globally accessible primary trading venue in NDFs is greater than ever,” said Paul Houston, global head of FX products at CME Group.
“Combining our two leading NDF trading platforms will improve access for participants around the world while expanding liquidity, improving price discovery and providing operational efficiencies for the marketplace.”
EBS Market was the first venue to provide electronic NDF trading on a central limit order book in 2007. The platform allows customers to trade 1-month Asian NDFs, LatAm NDFs and African NDFs.
Last week, CME Group launched a new all-to-all spot FX marketplace to better connect over the counter (OTC) and futures liquidity. Named CME FX Spot+, the new marketplace allows cash market participants to access CME’s futures liquidity in OTC spot within a central limit order book environment.
Elsewhere, in November, the London Stock Exchange Group’s (LSEG) fully cleared non-deliverable forwards (NDF) matching platform went live. Based in Singapore and with the backing of the Monetary Authority of Singapore (MAS), the platform is the first phase of LSEG’s plans to implement NDF, spot matching and streaming relationship venues in Asia.