ICE said in a statement that open interest for Sonia contracts reached a record seven million contracts and an all-time high ADV of , contracts. BTC has seen remarkable growth in volume and customer interest with 7. Micro Ether futures MET volume has grown rapidly in the first 2 weeks since launch, with over K contracts traded. Our latest ExchangeReview is now live! Thursday, January 13, Traders Magazine.
Henry Schwartz, Cboe Global Markets. Source: Cboe. Ben Jackson, ICE. Source: CryptoCompare. January 12, CEO discusses current topics in the trading of over the counter securities, including investor protection, SEC Rule , and retail investors' interest in digital assets. NinjaTrader Acquires Tradovate January 12, The regulation is well-established now, but the need to measure and demonstrate best execution is increasingly important trend in FX markets for all products whether they are covered by MIFID II or not.
CME Listed FX market, being a regulated all-to-all central limit order book, greatly assists in providing best execution for end users. This has been one of the drivers behind increased usage by asset managers and investors in the Listed FX market. Outside of regulations, are there any other important factors impacting trading behavior in FX derivatives? The adoption and growth we have seen in listed FX markets, in both major and emerging market EM pairs of FX futures, has also been driven by factors other than regulatory change.
Generally, the advantages of Listed FX products facing a regulated central counterparty not only drives lowers capital costs and counterparty credit risks, they enable participants to achieve efficiencies through standardization of processes such as collateral management, payments and documentation.
The latter has been a notable driver of new business from buyside participants. Taking into account the changing market structure of FX, what has CME Group done with its futures and options markets to alleviate customer pain points? These MPI reductions have delivered enhanced price discovery and lowered cost of trading in our marketplace. In all cases liquidity has improved representing substantial cost savings to our customers. There is also an increasing opportunity to use FX futures as a proxy for FX swaps enabling capital and cost-efficient risk transfer.
This may become especially relevant as capital changes such as SA-CCR impact the costs of trading FX swaps and the market generally moves more electronic, at least for standard points and risk transfer.
Recognizing that activity in FX options across both listed and OTC markets has been challenged by decreasing volatility over the past two years, we have transformed our listed FX options to further position them as a flexible, capital efficient and complementary pool of liquidity to the traditional OTC FX options market changes include greater strike granularity, more maturities and expiry times aligned with OTC.
The relative cost benefits of Listed FX options should become more pronounced as UMR becomes more widely adopted, with upcoming phases in September and impacting a greater number of firms. In addition, given that OTC participants are still primarily trading options via non-electronic conduits, we have also introduced a new block trading mechanism, known as Directed RFQ, which allows clients to seek liquidity for larger listed trades, known as blocks, on a bilateral basis with their preferred liquidity providers and benefit from automated submission to CME clearing post execution.
During the 2 nd half of CME launched 3 new tools aimed at providing existing and potential customers data and analytics to understand our products better and their decision making. In summary these tools are:. Since launch we have had thousands of users access the tools- all are available on CMEGroup. How are investors responding to your own products and unique capital and margin efficiencies that CME provides?
Drilling down deeper into the specifics, we can see that the futures market is where demand is growing the most. Last year, over end users — including asset managers, hedge funds and corporates — added new currency pairs or have started using CME FX futures for the first time.
In Q1 of this year, a further new users of Listed FX have been recorded, which has helped contribute to growing volume in contracts traded and open interest.
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