09.21.2017

CME to Launch OTC FX Central Order Book

09.21.2017

CME Group has announced plans to debut foreign exchange basis spreads, dubbed CME FX Link, on its CME Globex electronic trading platform, according to exchange officials.

This will create the first ever central limit order book between the over-the-counter (OTC) spot FX and CME Group FX futures markets. It is expected to launch in Q1 2018 and will provide OTC FX market participants with a more efficient way to access and use FX futures as part of their overall trading activity.

The CME FX Link enables trading of an OTC spot FX contract and a CME Group FX futures contract via a single spread trade on CME Group’s liquid and transparent CME Globex trading platform. This allows efficient credit line management across both markets.

The FX basis spreads will be available in the new release testing environment in November and for first trade in Q1 2018 pending regulatory review and will initially be supported for six currency pairs: EUR/USD, JPY/USD, GBP/USD, CAD/USD, AUD/USD and MXN/USD. The spreads will be offered against each of the front three CME FX futures expiry months.

CME Group is partnering with Citi’s FX Prime Brokerage unit to act as central prime broker for the spot FX transactions resulting from the spread. This will allow participants to leverage existing OTC FX interbank credit relationships and the scale of the established OTC FX prime brokerage network.

Paul Houston, global head of FX products at the CME Group said, “By strengthening the integration between futures and the OTC FX marketplace, CME FX Link will enhance access to our deeply liquid FX futures market. OTC FX market participants will benefit from the capital and regulatory advantages of listed futures as well as optimizing credit lines through facing a central counterparty.”

Sanjay Madgavkar, global head of FX prime brokerage at Citi, added, “Citi is excited to partner with CME Group on this innovative new offering. By applying the capabilities of our leading Global FX Prime brokerage business, we believe we can help FX market participants to manage their exposures across both markets more effectively.”

Pension funds, sovereign wealth funds, endowments and other institutional asset owners are sitting on vast troves of data -- but extracting value from that data is more challenging than ever.

#AssetOwners #DataQuality

Technology costs in asset management have grown disproportionately, but McKinsey research finds the increased spending hasn’t consistently translated into higher productivity.
#AI #Fiance

We're in the FINAL WEEK for the European Women in Finance Awards nominations – don't miss your chance to spotlight the incredible women driving change in finance!
#WomenInFinance #FinanceAwards #FinanceCommunity #EuropeanFinance @WomeninFinanceM

ICYMI: @marketsmedia sat down with EDXM CEO Tony Acuña-Rohter to discuss the launch of EDXM International’s perpetual futures platform in Singapore and what it means for institutional crypto trading.
Read the full interview: https://bit.ly/45xRUWh

Load More

Related articles

  1. Comings is head of FX sales at U.S. Bank.

  2. This is a significant milestone towards mainstream adoption of onchain finance.

  3. Clients’ trades were matched within State Street’s FX Connect execution platform.

  4. From The Markets

    CLS Redesigns CLSClearedFX

    LCH ForexClear is the first central counterparty to go live on the service.

  5. The 26% increase in April was the largest survey-on-survey increase since 2013. 

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] By continuing to use our services after Aug 25, 2025, you agree to these updates.

Close the CTA