CME to Debut FX Spot+ Platform, Bridging Gap between Spot FX and Futures

Wednesday, 06/12/2023 | 09:14 GMT by Damian Chmiel

The company aims to launch a platform linking OTC and futures liquidity.

CME FX Spot+ aims to enhance FX market access, available for testing in late 2024.

CME Group announced today (Wednesday) that it plans to launch a new spot foreign exchange (FX) marketplace called CME FX Spot+ in 2024. The platform will connect spot FX participants directly with CME's existing FX futures liquidity pool.

CME Group Announces New FX Spot Marketplace

CME FX Spot+ will allow spot FX traders to access CME's futures liquidity in over-the-counter (OTC) spot terms using a central limit order book. It will additionally provide FX futures traders expanded access to OTC FX liquidity . The system leverages CME's FX Link, which connects OTC spot FX and CME FX futures trading.

The marketplace will be accessible through CME Globex and EBS Market, enabling EBS' global spot FX customer base direct connectivity. According to Paul Houston, CME Group's Global Head of FX Products, "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 CME stated that the new spot FX marketplace further builds on their existing FX offerings, including FX futures, EBS spot FX trading, and central counterparty clearing services. It aims to support more centralized and transparent liquidity in the fragmented FX market.

The company plans to make CME FX Spot+ available for client testing in the second half of 2024. Further details can be found at cmegroup.com.

CME Group's Record ADV and Higher Earnings

The company's trading volumes have surged in recent months. The marketplace reported record highs across several key metrics in its November market statistics. The average daily volume (ADV) reached 28.3 million contracts, a year-over-year increase of 21% and the highest-ever ADV for November.

This trading volume growth aligns with CME Group's latest earnings report, which highlighted increased demand from traders seeking shelter from market volatility . In Q3, CME Group's revenue rose to $1.3 billion, and operating income totaled $820 million. Net income jumped 13.7% to $807.8 million, or $2.25 per share.

In addition, after nearly ten years with the London team, Phil Hermon has been appointed as the Head of Growth and Execution for CME FX. Previously, he served as the Global Lead for FX Futures and EMA Business Lead for OTC Products. Hermon will guide efforts to expand CME Group's FX offerings with his deep expertise.