CME Group to integrate FX link with MarkitSERV and RTN

Derivatives market CME Group has recently announced that it has worked to integrate its FX Link resource with MarkitSERV messaging services from IHS Market alongside Refinitiv Trade Notification. This new link-up will mean that CME Group clients will now enjoy a far more streamlined onboarding experience, meeting Straight Through Processing (STP) requirements thanks to the ability to directly receive OTC spot FX messages via MarkitSERV or RTN.

Paul Houston, Global Head of FX Products, CME Group, said:

Paul Houston, CME Group

Paul Houston
Source: LinkedIn

We recognize how important automation and ease of connectivity is for our customers, and we continue to invest in enhancements to provide flexible access to the growing FX Link marketplace. By integrating with RTN and MarkitSERV, a larger group of market participants are able to use FX Link, a cleared and capital efficient pool of firm liquidity for FX swaps.

This integration was finalised within the platform just last month but is already being used by well-known banks, including Goldman Sachs. These banks use the platform and its new links to access further liquidity for FX swaps in eight different currency pairs and utilise price discovery.

CME Group

Dean Berry, Group Head of Trading & Banking Solutions, Refinitiv, commented:

Dean Berry, Refinitiv

Dean Berry
Source: LinkedIn

We are pleased to now support messaging from CME FX Link activity in order to standardize and streamline how customers can integrate in an efficient way with this growing marketplace for FX swaps.

CME Group’s FX Link is available in a central limit order book and on a credit agnostic, all-to-all basis.  It aims to provide truly firm pricing for its users. For bilateral FX swaps, it also provides a corresponding pool of liquidity, while merging a capital efficient and centrally cleared FX Future on its far leg with an OTC spot transaction on the near leg. FX Link supports up to eight currency pairs at this moment in time, which, according to an up-to-date BIS survey,  accounts for around 69% of the FX swaps market on a combined basis.

Finally, Mark Briant-Evans, Head of FX Business Development, IHS Markit, noted:

We are excited to work with CME FX Link to provide customers with turn-key integration to this innovative platform for FX swap execution.

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