I just got an e-mail from CME. I did not expect something like this happening too soon. If their spreads will be realistic, it is going to be THE PLACE to trade spot fx. CME and Reuters to Create FXMarketSpace â The World's First Centrally-Cleared, Global FX Marketplace CME is proud to announce that it has partnered with Reuters to create FXMarketSpace, the worldâs first global FX marketplace to offer anonymous, cleared trading of OTC FX instruments through a central counterparty. Through this joint venture, CME and Reuters will pool their expertise in data dissemination, distribution, trade matching and central counterparty clearing services to provide you, our valued customers, with broadened access to the $2 trillion a day FX market. Broad Access, Credit Efficiencies As FX has emerged as an asset class in its own right, as non-bank financial institutions are playing an increasingly important role in global FX markets, and with the continued growth of electronic and algorithmic trading, FX customers are looking for broader access to the FX market. FXMarketSpaceâs trading model will provide a host of advantages to market participants: - Broad global distribution through Reuters market leading desktop community in FX, - CME clearing firms and selected independent software vendors; - Trading anonymity; - Transparent and competitive prices on the CME Globex® electronic trading platform; - Central counterparty services through CME Clearing; and, - Straight-through processing, increased operational efficiencies and lower costs. We believe these advantages will ultimately provide customers with deep liquidity, credit-efficient trading, reduced costs and open, transparent access to the marketplace. Ultimately, FXMarketSpace will help global FX markets to operate more efficiently and grow even faster. Proven Track Record in Meeting the Needs of the FX Market CME and Reuters have long-standing reputations for meeting and exceeding the ever-changing needs of the FX market. FXMarketSpace is the latest way in which these two leading organizations in the FX futures and spot markets â and in global financial services â can deliver value to our customers.
when will they do this with interest rate swaps. there are more interest rates than there are currencies.
Looks like things are looking up for spot traders. "As a centrally cleared marketplace, the joint venture will provide an organised structure for clearing all transactions conducted on its platform and guaranteeing the performance of contracts, greatly reducing counterparty risk." "When will the new organization launch?" "We expect to begin beta testing in November and to launch in the first quarter 2007." http://www.cme.com/trading/prd/fx/fxmarketspace.html
Hopefully this is a move towards Forex becoming safer and a better market to trade in the future. Get rid of the FXCM's and other rip off bucketshops.
Finally - will be great to see come to fruition. If it flies in full effect, s/ see the investment banking firms have some "fun" accepting a new playing field... If they truly show all participants quotes? - Money
Surprised that there is not more discussion about this venture given the sheer massive volume of inquiries and talk about FX buckets. My understanding is that this offering will be geared from retail on up...
Maybe not man successful Forex traders? I know I'm certainly not one, blew to mini accounts at FXCM a good time ago.
Not much can be said now, apart from conjecture. Best to wait and see for a few months, then comment on any apparant changes/developments.