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.
Open Interest in EUR/USD currently held by asset managers
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*
Q1 2020 average daily notional in CME-listed FX products, with single-day volumes surpassing $270bn
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.
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.
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 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.
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.
German boutique investment firm 7orca on why they use listed FX products with OTC FX to gain the exposure and returns they need.
Compare listed FX to OTC FX to understand the capital efficiencies FX futures and options can offer.
Why more asset managers are augmenting FX trading with listed FX to diversify risk, reduce counterparty credit exposure, and more.
Explore how to get cost-efficient, manageable synthetic exposure to OTC FX spot, forwards, and swaps.
How listed FX options could help buyside firms save up to 70% on execution costs and reduce UMR funding costs by up to 86%.
Learn how FX futures work, explore how we ensure orderly markets, and access tools to help you optimize listed FX strategies.
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.