Cboe FX Markets launches central limit order book

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.

Cboe Global Markets

Jonathan Weinberg, Head of Cboe FX said:

Jonathan Weinberg, Cboe

Jonathan Weinberg

With no average daily volume requirements, Cboe FX Central provides a more democratic model to access real-time data than the current primary markets where real-time data is provided to those that execute a certain monthly volume threshold. Any market participant on Cboe FX Central, regardless of the size or volume of its trading activity, is able to earn faster market data on Cboe FX Central on an order-by-order basis. Additionally, this model incentivizes liquidity providers to improve the quality and depth of our order book, benefitting all market participants by their receiving better prices for their orders.

Cboe FX Central employs order matching mechanics , consistent with other central limit order books in the FX market. The minimum quote life of all orders in the books is 25 milliseconds and orders are executed on a price (displayed then hidden) / time priority.

Cboe FX’s addition to the comprehensive suite of trading services Central Cboe FX offers responds to the diverse needs of the FX trading community including order book (Cboe FX Central), sweepable order book with curated firm and non-firm liquidity (ECN) and full amount trading providing a solution for larger order risk transference with low market impact (Full Amount).

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