CME FX Link: One CME Globex Spread, Connecting Two FX Markets

We've created a seamless connection between our FX futures and the OTC FX marketplace – so you can use one CME Globex spread to more easily access the efficiencies of FX futures and better manage your FX exposures.

Everything You Need to Know About FX Link: The documents and latest video

Volume Tracker
Stay up-to-date on volume, updated daily.

Overview Guide
Read all about it, get connected and onboarded. 

Quotation Guide
Understand quotation and trade pricing. 

CME Globex Impacts
Understand the functionality.

CME Globex 101
Understand CME Globex in less than 10 minutes.

Launch Announcement
Read about the market reaction.

Trading, Simplified

Simultaneously execute FX futures and OTC spot FX differential as an electronic spread on CME Globex.

OTC FX Network, Utilized

A central FX Prime Broker will intermediate spot FX transactions resulting from the spread, so you can efficiently leverage established OTC FX Prime Brokerage and interbank networks for credit and documentation.

Exposures, Optimized

More efficiently manage your credit lines across FX futures and OTC FX when you add CME FX futures as part of your FX trading strategy.

The Profit&Loss Perspective

Colin Lambert of Profit&Loss Describes what the Launch of FX Link could mean to the FX industry

“Today could actually turn out to be a reasonably significant day for the FX industry. The reason I feel it may be significant is down to my long-standing belief that greater automation and efficiency in FX forwards and swaps is the key to long term growth in the broader FX industry, and there is a chance that FX Link may help deliver the regulatory and capital efficiency to help drive that, in an automated environment.”

Spread Functionality Specifications

Eligible Currencies

AUD/USD, EUR/USD, GBP/USD, USD/CAD*, USD/JPY*, and USD/MXN*

*CCY pairs quoted inversely to futures.

Basis Spread Quotation

Quoted and traded as the difference between futures and spot as represented with both legs in OTC price convention

Basis Spread Construction

The buyer of the spread buys CME FX futures and sells OTC Spot FX, while the seller sells CME FX futures and buys OTC Spot FX.
For FX futures currency pairs that are quoted inverse to OTC FX convention*, the buyer of the spread sells FX futures and sells OTC FX spot and vice versa for a seller of spreads in the above listed pairs.

*Inverse Pairs: JPY/USD, CAD/USD, MXN/USD

Minimum Order Quantity

EUR/USD, USD/JPY, GBP/USD, USD/CAD, AUD/USD = 5 spreads; USD/MXN = 15 spreads

Trading Venue/Hours

CME Globex: Sunday – Friday, 5:00 p.m. - 4:00 p.m. Chicago Time (CT), with a 60-minute break each day beginning at 5:00 p.m. (4:00 p.m. CT).

Spread Listing Schedule

Spreads vs. front three FX futures expiration months. New spreads added 10 business days prior to the last trade date of an expiring CME FX Futures.

 

Currency Pair AUD/USD EUR/USD GBP/USD USD/CAD USD/JPY USD/MXN
Spread Minimum Price Increment 0.00001 0.00001 0.00001 0.00001 0.001 0.0005
Spread Notional (per leg) 100,000 AUD 125,000 EUR 62,500 GBP 100,000 CAD 1 12,500,000 JPY 500,000 MXN

Spot Leg Specifications

Currency Pairing Value Date Minimum Price Increment* Spot Notional Per One Spread **
AUD/USD T+2 0.00001 (0.1 pip)  100,000 AUD
EUR/USD T+2 0.00001 (0.1 pip) 125,000 EUR
GBP/USD T+2 0.00001 (0.1 pip)  62,500 GBP
USD/CAD T+1 0.000001 (0.01 pip)  100,000 CAD
USD/JPY T+2 0.0001 (0.01 pip)  12,500,000 JPY
USD/MXN T+2 0.00001 (0.1 pip)  500,000 MXN

Settled Bilaterally via physical delivery on value date

* The minimum price increment (MPI) of an OTC Spot FX Transaction is separate and distinct from and is not necessarily a reflection of the MPI of a Spot FX Basis Trade, which the Exchange shall determine.

** The OTC Spot Notional per One Spread for the USD/CAD, USD/JPY, and USD/MXN currency pairings shall be defined in terms of the quote, or term, currency of each pairing rather than the base currency since the CME pricing and notional convention for related CME FX futures contracts is inverted from the over-the-counter (OTC) convention

Futures Leg Specifications***

Product Code Contract Size Futures Quotation Tick
6A 100,000 AUD USD per AUD .0001 (10.00 USD)
6E 125,000 EUR USD per EUR .00005 (6.25 USD)
6B 62,500 GBP USD per GBP .0001 (6.25 USD)
6C 100,000 CAD USD per CAD .00005 (5.00 USD)
6J 12,500,000 JPY USD per JPY .0000005 (6.25 USD)
6M 500,000 MXN USD per MXN .00001 (5.00 USD)

Cleared via CME Clearing

*** Full product specification for existing CME FX futures contracts is available on cmegroup.com/fx and in CME’s Rulebook

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