CME Group Launches FX Spot+ Platform, Connecting OTC and Futures Markets
December 06, 2023 - CME Group has announced the launch of CME FX Spot+, an all-to-all spot FX marketplace connecting cash market participants directly with CME's deep FX futures liquidity for the first time. Expected to be available for client testing in H2 2024, the new offering represents a significant development for institutional FX market participants.
By leveraging FX Link, the tradable spread between OTC spot FX and CME FX futures, the CME FX Spot+ platform bridges liquidity between the two previously disconnected trading environments. Institutional spot FX traders gain centralised access to futures liquidity on OTC terms through an open order book, while futures traders see expanded access to global OTC liquidity.
The platform is accessible via the CME Globex network. Existing EBS Market users benefit from turnkey connectivity via Globex bridges, allowing seamless entry for the extensive EBS spot FX customer base to this unique, complementary liquidity pool.
Paul Houston, Global Head of FX Products, CME Group
"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.”
The launch can be seen as the first major announcement after Paul Houston was appointed Global Head of FX Products at the CME back in August, with the remit to adopt a more integrated FX business model across futures, options, cash ad OTC markets. It is interesting to note that the the announcement has been made this far ahead of release of the product, which is only set for release in the second half of 2024 (at least 6 months out from today)
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