CME Group has announced a new single-day volume record for its FX futures and FX Link spread trading tool, achieved on June 12. This milestone follows a surprising US Consumer Price Index (CPI) report, a Federal Open Market Committee (FOMC) decision, and the unexpected call for a general election by French President Emmanuel Macron.
The FX futures volume reached 3.26 million contracts, equivalent to $314 billion in notional value. This surpassed the previous record of 3.15 million contracts or $296 billion notional, set on March 8, 2023.
Additionally, CME’s FX Link, an anonymous, all-to-all spot-futures spread trading tool, also hit a record with 113,662 contracts traded, amounting to $10.5 billion in notional value on June 12. This marks a 37% increase from the previous record of 82,900 contracts or $7.2 billion notional, set on June 16, 2022. CME reports that FX Link volumes have surged over 52% year-to-date compared to the same period in 2023, with April and May registering the second and third highest daily volumes since the tool’s launch, only surpassed by September 2022.
“Achieving two all-time volume records on June 12 is a significant milestone for CME Group FX products, highlighting the sustained growth in client segments, currency pairs, and overall liquidity over many months,” stated Paul Houston, Global Head of FX Products at CME Group. “FX Link will be integral to our new CME FX Spot+ marketplace as we gear up for client testing in the second half of 2024. The enhanced liquidity, tighter spreads, and increased client participation lay a stronger foundation for delivering value to market participants in the future.”
Shuo Wu, Global Head of Forward e-Trading at Deutsche Bank, expressed satisfaction with the growth of CME Group FX futures and FX Link, noting their role as complementary liquidity sources to the over-the-counter (OTC) market and their contribution to automating the trading of products like FX swaps.
Richard Condon, Head of FX, Commodity, and Emerging Market Institutional Sales for North America at BNP Paribas, remarked, “The record levels of listed FX volume indicate the rapidly evolving interplay between OTC and cleared FX futures liquidity. Particularly, the use of Exchange for Related Position (EFRP) among institutional clients continues to appeal to hedge funds and asset managers. Participants appreciate the benefit of combining the familiarity, breadth, and relationship pricing of bilateral OTC execution strategies with the advantages of a centrally cleared instrument.”
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