On Wednesday, CME Group announced its plans to launch a new spot FX marketplace next year. The new offering, CME FX Spot+, will bring together CME’s FX futures liquidity pool with other spot FX users for the first time and “benefit market participants across both venues”, according to the company’s executive, Paul Houston. Testing for the platform will begin in Q3 or Q4 2024.
CME Group to launch new spot FX marketplace next year
CME Group has cemented its position as a leading global financial derivatives marketplace in recent years. It operates a range of trading markets, including mercantile exchanges in Chicago and New York. The new all-to-all spot FX marketplace will build on its existing infrastructure and expertise to deliver a feature-rich experience for customers. They will, for example, be able to access CME FX futures liquidity for the first time via the CME Globex network.
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Houston believes FX Spot+ will benefit the industry by increasing access and transparency of trading opportunities in foreign exchange. The launch will again burnish CME Group’s reputation as a one-stop shop for all global benchmarked products. The company’s exchange currently provides a plethora of major asset classes; traditional FX and equity indexes are available alongside other products, including metals, energy and agriculture.
Houston added in a statement:
Alongside our FX futures and our EBS offerings, this new spot FX marketplace – and its unique connection with our FX futures liquidity – is the latest example of how having futures and spot markets at CME Group can support accessible, centralized liquidity within the highly fragmented FX market.
Spot FX participants will have to wait a little while for an official launch, though. Client testing is penned in for the second half of next year.
