Listed FX: Resources for Asset Managers

Why more asset managers are trading listed FX and how to get started

Understand why more asset managers are turning to listed FX futures and options as an additional source of liquidity, and how the fundamentals of our markets – transparency, orderliness, equality and all-to-all access– are becoming increasingly attractive as managers worldwide work to fulfil their fiduciary obligations.

Learn how the asset manager community uses exchange-traded products to replicate OTC trading; read how managers are using listed FX contracts and what factors are driving this decision-making; understand how banks can facilitate these transactions – and find out how to get started.

By the numbers

43%

Open Interest in EUR/USD currently held by asset managers

30%

Increase over last five years in number of customers holding sizeable FX futures positions, with dealers and asset managers as the largest open interest holders*

$102bn

Q1 2020 average daily notional in CME-listed FX products, with single-day volumes surpassing $270bn

*source: CFTC

Exchange-traded derivatives can be used to replicate more than 90%* of OTC instruments

Spot and forwards

Accounts for more than 40% of all FX trading. FX futures are used as a proxy for OTC spot and forward outrights, with calendar spreads also acting as a proxy for OTC FX swaps. Liquidity is available in over 40 currency pairs, from G10 to EM.

FX swaps

Comprise almost 50% of all activity. FX Link provides a cleared, standardized, and credit-efficient alternative to FX swaps, available in eight currency pairs. FX Link enables participants to trade the spread between futures and the OTC market.

Listed FX options

Represents 4% of all OTC activity. FX options on futures are used to hedge OTC exposures, across 24 currency pairs, using the granularity of weekly and monthly expiries on Mondays, Wednesdays, and Fridays – all expiring at 10am NY, per OTC market conventions.

*As calculated by the 2019 BIS Triennial Survey.

View how our FX offering aligns to OTC FX

View a full list of products across G10 and Emerging Markets – including futures, options on futures, FX Link, and cleared OTC FX products – and how they align to the OTC market.

Research papers

Addressing today’s key industry challenges


Asset Manager Adoption and Use of FX Futures: Increasing Post-COVID

This article discusses how asset managers are using our futures markets to manage risk, what’s driving their decision-making, and how we have seen their appetite for our markets expressed in both holding large open interest positions and being translated into volume.


Why 7orca Mandates Include FX Futures and OTC FX As Complementary and Additive Sources of Liquidity

German boutique investment firm 7orca on why they use listed FX products with OTC FX to gain the exposure and returns they need.


Investigating Total Cost Analysis, Quantitative and Qualitative Factors

Compare listed FX to OTC FX to understand the capital efficiencies FX futures and options can offer.


Fulfilling Fiduciary Requirements Whilst Remaining Competitive

Why more asset managers are augmenting FX trading with listed FX to diversify risk, reduce counterparty credit exposure, and more.


How to Use Futures to Replicate OTC Positions

Explore how to get cost-efficient, manageable synthetic exposure to OTC FX spot, forwards, and swaps.


Greenwich Associates on Total Cost Analysis and Uncleared Margin Rules, focused on FX Options

How listed FX options could help buyside firms save up to 70% on execution costs and reduce UMR funding costs by up to 86%.


SUBSCRIBE: THE FX REPORT

Each quarter, we publish The FX Report, which assembles all of the key news, views, and stats the asset manager community needs to know.

Resources

Learn, rules, and tools

Learn how FX futures work, explore how we ensure orderly markets, and access tools to help you optimize listed FX strategies.


Learn

CME Institute: how futures and options on futures work

Build your knowledge

Listings/expirations calendar

View key dates


Rules

Meet the CME Group team dedicated to protecting market integrity, enforcing rules that protect all market participants, and acting proactively to mitigate risks and prevent damage to the marketplace.

Meet the team that maintains our markets


Tools

FX Pace of Roll Tool

Follow the FX roll period with daily updates to help you adjust roll-related strategies.

Track OI migration

CME FX Swap Rate Monitor

Access a firm, public price reference to monitor swap spreads.

Access the tool

Commitment of Traders Tool

Explore who participates in our markets and who holds large open positions, as reported by the CFTC.

See positions by trader type

More analytical tools

Explore our complete suite for researching and generating trades, tracking, and testing.

Browse all tools

Access our markets

Clearing Firms

Connect to a clearing firm (Futures Commission Merchants).

Block Market Makers & Brokers

Connect with a block market maker who will execute blocks.

Market Data

Get market data (real-time, historical or derived).

Contact us

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