As trading costs, regulatory oversight, and conduct risk pressures continue to increase, CME listed FX options help participants across the globe resolve their trading and execution challenges.
Address some of the increasing fiduciary responsibilities and regulatory requirements by improving TCA for FX options.
For your clients:
A 50% reduction in exchange fees is in place until June 30, 2021 for all large CME FX option trades ‒ whether traded electronically, by blocks, or in the pit. A large trade is defined as those meeting the block threshold.
For your firm:
Brokers intermediating FX options trades, by matching two counterparties, can register themselves for exchange rebates of up to $1.40/lot (c $11/mn of notional intermediated on major currency options).
Give-up fee waived for all FX option trades adding increased efficiency to a broker/execution desk workflow.
Via our all-to-all, anonymous Central Limit Order Book offering credit agnostic pricing:
Compulsory exchange of margin on FX options under Uncleared Margin Rules (UMR) will capture more clients as qualifying exposure thresholds are reduced in September 2021 and 2022. This impact will be felt both directly, through the costs and overheads of posting margin for the first time, or indirectly, as the increased costs impact FXPB fees and trading costs.
CME listed FX futures and options trade an average daily volume of $81 billion with average open interest of more than $239 billion (Q4 2020). The number of large open interest holders in FX futures and options has risen by over 40% in the last five years, reflecting a growing marketplace which continues to attract new institutional clients globally. Listed FX options liquidity continues to demonstrate increasing resilience, allowing buy-side clients to execute large orders (circa $1 billion in notional) over short time windows without any severe price impact.
Contact your relationship manager to find out more about
CME FX options or contact the firstname.lastname@example.org
Learn FX Options: Teach-in for Intermediaries
CME Group's instructor David Gibbs explores the benefits of listed FX options for your clients in this teach-in tailored to intermediaries and brokers
Know what end users know:
We’re seeing more end users enter our FX options market, attracted by the capital efficiencies and the ability to execute large trades in a style they’re used to – with their broker network.
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Discover trading strategies specifically designed for CME listed options, by leading research house, Macro Hive.