Cboe FX Markets, institutional FX trading platform, announced its plans to launch Cboe FX Central, a new central limit order book (CLOB) for the FX market.
Cboe FX Central is an all-to-all market with instantly executable liquidity in the order book. It is scheduled to launch on 29 June and will offer the most popular traded pairs in the spot FX market: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF, USD/CNH.
Bryan Harkins, Head of Markets at Cboe Global Markets commented:
Bryan Harkins, CBOE Head of U.S. Equities and Global FX
We believe there is a unique opportunity to improve upon the two central limit order books that currently exist in the FX market by providing a new central limit order book built on great technology and a unique market model designed to incentivize and democratize FX liquidity provision and market data.
Cboe FX Central builds on the CLOB model. It acknowledges the value of liquidity providers (LPs) and provides them with faster market data when their liquidity is at or close to the best bid or offer (BBO). In this way it creates a deeper order book, which in turn benefits liquidity takers. Cboe FX Central market data will be offered at three different speeds (real-time, 3 millisecond delay, 10 millisecond delay) and the speed is determined by where the LP’s liquidity is relative to the Cboe FX Central BBO.