CME Group has launched a new all-to-all spot FX marketplace aimed at better connecting over the counter (OTC) and futures liquidity.
Named CME FX Spot+, the new marketplace will allow cash market participants to access CME’s futures liquidity in OTC spot within a central limit order book environment.
FX futures market users on CME are also expected to see expanded access to OTC FX liquidity through the new platform.
It is expected to be made available to clients for testing in the second half of next year.
“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, centralised 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.”
The new offering will be accessible via CME’s Globex network, including via its existing EBS Market Globex. It also aims to better connect liquidity by utilising FX Link – the spread between OTC spot FX and FX futures.
FX as an asset class has seen a significant uptick in on-venue trading volumes in recent years, moving away from what has historically been an OTC-heavy environment.
Trading venues and exchange operators have subsequently been keen to innovate the technology that hosts FX trading in many instruments in recent years to cater for increased demand.
CME’s launch is the second major FX announcement by a venue in the last month after LSEG also confirmed its Singapore NDF matching platform had gone live in mid-November.
The roll-out is the first phase of LSEG’s plans to implement NDF, spot matching and streaming relationship venues in Asia.