CQG News | CME FX: Is peer-to-peer already here?

▤ Summary

Some end users – or the buy-side comprising hedge funds and asset managers, as well as corporates and commercials – are increasingly interested in this model as it enables them to be more than price takers. Other potential benefits include trading in an environment with enhanced transparency, anonymity, and clear rules that can help govern conduct and evidence of how clients will meet their fiduciary responsibilities. Enter the futures CLOB: The community is already connected, the features already exist While some fintech start-ups are building platforms that attempt to deliver the potential benefits of a peer-to-peer model, an increasing number of market participants have realized that the fundamental features of the CME listed FX central limit order book (CLOB) already have them – and that the crucial factor of a large and diverse ecosystem of traders is already active and growing. The table below helps to show further color and context on the level of passive trading in the December quarterly roll for the five most active FX futures contracts at CME. • The FX futures CLOB enables peer-to-peer trading and is already established as one of the largest primary venues for price discovery, providing customers with many potential features including the ability to separate liquidity from credit.

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