CME Group Integrates FX Link with Bloomberg For FX Swaps

June 23, 2021 - CME Group today announced that market data and order entry functionality for FX Link are now available on the Bloomberg Terminal to enable market participants to electronically access pricing, liquidity and trading for FX swaps in G5 currency pairs.

CME FX Link is traded as the differential between FX futures and OTC Spot FX, resulting in simultaneous execution of a FX futures contract and an OTC Spot FX transaction via a single spread trade. A central prime broker intermediates the OTC Spot FX transactions resulting from the spread, leveraging existing OTC FX credit relationships and supporting anonymity of trading.

Scope includes spreads between OTC Spot FX and the front two serial and quarterly expiries in: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY, USD/CAD, USD/CHF & USD/MXN.

The integration provides mutual clients with access to new FX futures contracts through Bloomberg's ISV, Tradebook. It also strengthens FX Link's position as a cleared and capital efficient central limit order book for FX swaps, which leverages existing OTC and futures workflows. Through the integration with Bloomberg, a larger group of market participants are able to view and execute FX Link's firm liquidity pool.

"FX Link is the tradeable spread between OTC FX spot and CME listed FX futures and therefore represents a cleared and capital-efficient pool of firm liquidity for FX swaps traded on our central limit order book," said Paul Houston, Global Head of FX Products, CME Group. "Bloomberg customers can now seamlessly view and execute trades in FX Link and access this diverse liquidity pool supported by existing workflows."

"Our connection to CME FX Link enhances our data and trading offering and enables us to provide our clients with comprehensive trading solutions," said Brian Coffaro Global Head of Futures and Options Trading, Bloomberg. "This integration enables us to continue delivering cross asset solutions that provide our clients with access to greater liquidity and price transparency in the futures and FX markets."

FX Link delivers a differentiated liquidity pool, supported by a diverse set of participants, including banks, non-bank liquidity providers, hedge funds and asset managers.