Rick Sears Managing Director, CME Foreign Exchange
Rick Sears Managing Director, CME Foreign Exchange

CME FX on Reuters - Combining the best of two worlds

Rick Sears examines the potential impact of bringing the two largest pools of buyers and sellers into one unified trading environment.

First Published: e-Forex Magazine 18 / Retail Forex Client / April, 2005

Earlier this year CME’s FX on Reuters initiative went live, providing Reuters’ global 18,000 user customer base with, for the first time, direct access to CME’s foreign exchange (FX) futures and enhancing the ability to seamlessly trade FX spot and futures. The service links the sell-side traders in the interbank FX market, Reuters’ traditional client base, to CME FX futures markets, where hedge funds and other major buy-side participants, such as commodity trading advisors (CTAs), play a major role.While the FX futures space is still a small portion of the FX world, it is rapidly growing. Last year, average daily volume in CME’s FX complex increased 50 percent to more than 200,000 contracts with a notional value of $24.4 billion. With its three-year compound annual growth rate of 112 percent on CME’s GLOBEX® electronic matching platform, CME FX now accounts for approximately five percent of the overall FX market.CME’s traditional buy-side customer base...continued

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