FX futures provide a large pool of firm, anonymous central limit order book (CLOB) liquidity along with a highly diverse and growing ecosystem of customers across banks, hedge funds, asset managers and retail. The volumes traded in FX futures rival, and in many cases exceed, the largest OTC FX spot ECNs, but there are a large number of FX traders who are currently unable to interact with this liquidity pool.

CME FX Spot+ solves this problem as it provides OTC Spot FX traders access to FX futures liquidity but in spot terms. CME FX Spot+ will be a firm Spot FX central limit order book, located in CME Group’s Chicago FX futures matching engine, with implied technology enabled. CME FX Spot+ will support accessible, centralized liquidity within the highly fragmented FX market.

CME Globex implied pricing functionality will connect liquidity in CME FX Spot+ with liquidity available in FX futures and CME FX Link.

Implied pricing simply identifies and combines resting liquidity from two related markets to represent an available implied resting order in a third, related market.

For example, an outright FX futures bid combined with a corresponding FX Link spread offer (which is an order to sell futures, buy spot) allows CME Globex to represent the FX Link spot bid into CME FX Spot+ order book as firm, executable spot liquidity.

Customers trading CME FX Spot+ will not need an FCM and do not need to trade, book or manage FX futures – they will be trading, booking and settling OTC spot FX positions either directly against a central counterparty or indirectly via their FX prime broker.

Access for order entry and market data will be available via the EBS Workstation as well as over standard CME Globex futures and options connectivity and via existing EBS connectivity in New York, London and Tokyo.

A central counterparty will directly (or indirectly via FX prime brokers) provide credit to trade on FX Spot+. The implied technology enabled through FX Link will represent FX futures liquidity in spot form and vice versa.

• Implied out: Resting FX futures and FX Link orders will be combined to represent resting FX Spot+ orders in notional terms
• Implied out: Resting FX Spot+ and FX Link orders will be combined to represent resting FX futures orders in contract terms
• Implied in: Resting orders in FX futures and FX Spot+ will be combined to represent resting orders in FX Link in contract terms

Implied orders on FX Spot+ do not have time priority relative to native orders, however, implied orders can only interact with native orders. 

All currency pairs in FX Spot+ will be quoted in OTC convention. Any residual quantity following matches that is less than the minimum order size will be automatically canceled by the engine.

Details such as supported currency pairs, minimum price increments, and minimum and maximum trade sizes can be found on the FX Spot+ webpage.