Cleared solutions for FX spot, forwards, swaps, NDFs and options risk
BY THE NUMBERS – H1 2024
$83.5B
DAILY FUTURES
TRADE VOLUME
$22T
TOTAL FUTURES & OPTIONS
CLEARED VOLUME
79,000
UNIQUE FUTURES
AND OPTIONS USERS
UP TO 86%
MARGIN SAVINGS
vs OTC
$4.36B
DAILY OPTIONS
TRADE VOLUME
UP TO 60%
MARGIN OFFSETS
AVAILABLE VS SOFR
& TREASURY FUTURES
OVER 25
BLOCK & EFRP
LIQUIDITY PROVIDERS
+52%
VOLUME GROWTH
IN FX LINK VS H1 2023
$314B
ALL-TIME RECORD
FUTURES VOLUME
DAY JUNE 12 2024
98.7%
OF ALL EUR/USD
FX FUTURES GLOBALLY
ARE TRADED AT CME GROUP
79,000
NEW CURRENCY
PAIRS LAUNCHED,
TAKING THE TOTAL TO 49
Methods of execution
The resulting risk is the same regardless of execution method used - centrally cleared FX with no need for ISDA or bilateral credit.
Electronic Central Limit Order Books (CLOB)
- Firm and transparent, no-last-look, first-on-price/first-to-fill market model
- Security of a central clearing house with no need for an ISDA or bilateral credit line to trade
- Certainty of a regulated central limit order book with transparent pricing on a credit agnostic basis
- Ability to work passive orders and trade peer-to-peer, reduces all-in transaction costs
- Liquidity across time zones, open 23-hours a day
- CLOBs for both FX futures and options
Bilaterally Negotiated FX “Blocks"
- Bilaterally negotiated trades with chosen liquidity providers for both FX futures and options
- Leverages OTC relationships and OTC liquidity
- Over 20 liquidity providers, including many of the top tier banks, as well as non-bank market making specialists
- Trade risk-transfer as per OTC with the benefits and efficiencies of a cleared wrapper
- Trade FX products without the need for an ISDA or bilateral credit line against chosen liquidity provider(s)
Exchange For Related Position (EFRP)
Choose to trade OTC FX and subsequently transition the risk into centrally cleared futures (or options on futures) using an EFRP.
OTC leg can be an existing position, or executed in the OTC market and offset immediately
A growing number of market participants of all types now consider currency futures traded on the CME as a close cousin of the primary [spot FX] CLOBs
BIS WORKING PAPER - APRIL 2023
Solutions For Centrally Cleared FX Swaps
These complementary mechanisms for FX swap trading separate liquidity from credit and provide unique transparency into the largest part of the global FX market.
CME FX Link
Tradeable basis between OTC FX spot and FX futures
The first ever anonymous, central liquidity pool for basis risk between OTC FX and FX futures. Trade on firm, transparent pricing of FX swap exposures – near leg OTC FX Spot, far leg centrally cleared FX futures.
Futures calendar spreads
A direct proxy for FX swaps
Execute calendar spreads of monthly or quarterly futures on the electronic CLOB, or as bilateral blocks or EFRPs, as a direct proxyfor forward starting IMM date to IMM date FX swaps.
|
MAJORS |
LATAM |
EM |
SCANDIS |
CE4 |
CROSSES |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
| EUR/USD | CAD/USD | MXN/USD | ZAR/USD | NOK/USD | CZK/USD | CZK/EUR | EUR/GBP | EUR/NZD | GBP/NOK | NZD/CAD |
| JPY/USD | CHF/USD | BRL/USD | RUB/USD | SEK/USD | HUF/USD | HUF/EUR | EUR/CAD | GBP/JPY | GBP/SEK | NZD/JPY |
| GBP/USD | NZD/USD | CLP/USD | TRY/USD | EUR/NOK | PLN/USD | PLN/EUR | EUR/JPY | GBP/CHF | AUD/CAD | CAD/JPY |
| AUD/USD | USD/CNH | KRW/USD | EUR/SEK | ILS/USD | EUR/CHF | GBP/AUD | AUD/JPY | CHF/JPY | ||
| INR/USD | NOK/SEK | EUR/AUD | GBP/CAD | AUD/NZD | ||||||
Choose to trade OTC FX and subsequently transition the risk into centrally cleared futures (or options on futures) using an EFRP.
OTC leg can be an existing position, or executed in the OTC market and offset immediately.
Contact us
For more information, please contact us at fxteam@cmegroup.com or visit cmegroup.com/fx
