Frances Maguire
Frances Maguire

Taming the OTC market

Frances Maguire writes about the advantages of trading on a regulated exchange.

No matter how much volumes grow on derivatives exchanges, it is still the tip of the iceberg when it comes to the global FX market. Frances Maguire looks at the advantages of trading on a regulated exchange.The foreign exchange market that has grown up in the interbank market is still proving resistant to attempts by the derivatives exchanges to woo them with the numerous advantages they offer -- such as credit efficient, anonymous trading via central counterparty clearing, extremely liquid markets and total price transparency not available on many other trading platforms.CME sets record volumesThe volume in FX products traded at the largest exchange, Chicago Mercantile Exchange (CME), rose by 49% between February 2004 and 2005. In December 2005, CME had set several FX volume records, including a new total FX volume record of 872,271 contracts, representing $96 billion in notional value. This surpassed the previous record of 748,050 futures and options contracts traded achieved in June 2005.Rick SearsRick...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here