CME Group Integrates FX Link with Bloomberg Terminal

CME Group announced on Thursday that it has integrated the market data and order entry functionality of FX Link with Bloomberg Terminal.

The press release further detailed that the integration will allow mutual clients to access new FX futures contracts through Bloomberg's ISV, Tradebook. Primarily, it will allow a large group of market participants to view and execute FX Link's firm Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pool. They can electronically access pricing, liquidity and trading for FX swaps in G5 currency pairs.

Bridging OTC FX and Futures Markets

CME operates one of the largest derivatives exchanges in the United States and launched FX Link in 2017 to bridge OTC FX and futures markets. FX Link offers a differentiated liquidity pool. It is supported by a diverse set of participants, including banks, non-bank Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes an individual and/or an institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profit on A liquidity provider (LP) constitutes an individual and/or an institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profit on Read this Term, hedge funds and asset managers.

Commenting on the development, CME Group’s Global Head of FX Products, Paul Houston, said: “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.”

“Bloomberg customers can now seamlessly view and execute trades in FX Link and access this diverse liquidity pool supported by existing workflows.”

The recent integration with Bloomberg will clearly strengthen FX Link's position as a central limit order book for FX swaps. Earlier this year, CME integrated FX Link with Refinitiv Trade Notification (RTN) and IHS Markit’s MarkitSERV messaging services.

“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 at 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.”