Live trading begins on CME/Reuters FX platform
Mon Mar 14, 2005 08:56 AM ET
LONDON, March 14 (Reuters) - Global information provider Reuters Group Plc (RTR.L: Quote, Profile, Research) and the Chicago Mercantile Exchange (CME.N: Quote, Profile, Research) said they had joined forces to offer foreign exchange trading on the same electronic system.
Trading on CME FX on Reuters went live in North America and Europe on Monday and will be available in Asia and Australia later this year.
The link-up gives the professional interbank community trading spot and forward products on the Reuters platform streamlined access to the largest futures exchange in the United States.
"The launch of CME FX on Reuters paves the way for more dynamic and efficient markets as the first major linkage between sell-side traders in the interbank FX market and electronic CME futures markets, where hedge funds and buy-side participants play a major role," the two companies said in a statement.
Buy-side investors are increasingly active in the $1.9 trillion a day foreign exchange market but many lack the size and credit standing to trade with bigger players on the interbank market.
Reuters and the Chicago Mercantile Exchange unveiled the arrangement last year and have been conducting tests with several banks including ABN AMRO, Bank of America, Barclays Capital and HSBC.
Trading volumes on the CME have been rising steadily and now account for around five percent of the overall foreign exchange market.
"In February average daily volume in CME's FX complex increased 49 percent, to more than 266,000 contracts, with a notional value of $35 billion," said Rick Sears, Managing Director, CME Foreign Exchange. |
