CME to Expand Offerings of CME FX Link with USD/ZAR Spot FX Basis Spreads

Fazzaco learned that Chicago Mercantile Exchange Inc. ("CME") will expand the listings of CME FX Link on the CME Globex electronic trading platform with the addition of spot FX basis spreads against the South African Rand /U.S. Dollar (ZAR/USD) futures contract, effective Sunday, November 20, 2022, for trade date Monday, November 21, 2022, and pending all relevant Commodity Futures Trading Commission (CFTC) regulatory review periods.

With the new expansion, CME FX Link will include spot FX basis spreads for the following nine major CLS-eligible currency pairs on CME Globex:

Australian Dollar/US Dollar

Euro/US Dollar

British Pound/US Dollar

New Zealand Dollar/US Dollar

US Dollar/Canadian Dollar

US Dollar/Mexican Peso

US Dollar/Japanese Yen

US Dollar/Swiss Franc

US Dollar/South African Rand

As the only cleared and capital efficient pool of firm liquidity for FX swaps, CME FX Link leverages existing OTC workflows. CME FX Link offers a transparent central limit order book on CME Globex for trading spreads between OTC FX Spot and CME FX futures, which connects the two markets.

"It is the first ever anonymous, automated connection between CME FX Futures and the OTC FX Marketplace, enabling participants across the industry to better manage their FX exposures, and more easily access the capital efficiencies of FX futures," CME stated in the press release, "Today, there are nine major FX PBs live, with credit lines in place with major bank FX house entities, along with integrated post-trade messaging provided by Traiana, RTN and IHS Markit."

In addition, the execution of FX Link is supported by Bloomberg, Fidessa, and CME Direct, while market data is made available by TT and Refinitiv.

As Fazzaco previously reported, CME Group has posted 21% YoY increase​ in international average daily volume during Q3 2022.