FX Monthly Futures

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Flexibility, Delivered.

As of February 27, participants can trade monthly FX futures on six of our most liquid currency pairs and enjoy greater granularity and access across the curve.

Our marketplace is defined by you, delivered by us. We are adding monthly expiries so you can access the capital efficiencies of futures with the flexibility you need, along with the outright and spread opportunities you want across the curve. It's what you asked for.

EUR/USD

GBP/USD

JPY/USD

CAD/USD

AUD/USD

EUR/GBP

Key Benefits

  • Depth of liquidity of our FX franchise
  • Capital efficiency of centrally cleared products: netting, lower capital charges and no CVA charges
  • Elimination of credit and counterparty risk, through centrally-cleared model 
  • Cost-efficient solution to re-pricing of Prime Brokerage services impacted by Basel III and Uncleared Swap Margin Rules
  • New outright and spread trading opportunities across the curve
  • Margin efficiencies available across the whole of our FX complex

Demand for FX Monthlies

The capital constraints which have reduced liquidity in the cash FX market and increased the cost of trading, have resulted in our markets reaching an all-time record high in Large Open Interest Holders in December 2016 – and $240billion of open interest – as market participants are increasingly utilizing futures to reduce their balance sheet pressures.

To help market participants manage their exposure we are introducing additional FX futures maturities to meet client demand and deliver more efficient risk management.

That is why FX Monthly Futures:

  • Provide liquidity points at each of the front four monthly IMM dates when combined with existing quarterlies
  • Enable Block Sizes of 20 for flexible execution
  • Trading opportunities – increased number of spread and curve combinations with automatic margin offsets via CME SPAN margining
  • Deliver netting and capital benefits of FX futures versus OTC forward exposures

Discover FX Monthly Futures

Capital and Credit Line Efficiencies

  • Monthly futures provide access to the first four months of the FX curve giving increased trading opportunities at lower capital and credit line costs
  • Capital and credit efficiencies with no credit line utilization and a two-day Margin Period of Risk (MPOR)
  • Lower balance sheet impact than bilateral FX via lower leverage ratio and risk-weighted asset utilization
  • Standardized products deliver full netting of contracts with the same currency and maturity date to minimize line items and capital consumption

Liquid Markets With Flexible Execution

  • Transparency of an open-access electronic central limit order book for all market participants
  • Ability for relationship-based trading via blocks, EFPs and Request For Cross

Reduced Trading and Transactional Costs

  • Long-term fee discounts for early adopters joining Market Development Program
  • Reduced minimum tick of one-tenth for consecutive month spreads, lowers cost to trade

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