- Cboe FX Central, a new central limit order book, aims to
bring competition and innovation to the FX "primary"
markets
- Cboe FX Central brings to market a unique market model
designed to incentivize and democratize FX liquidity provision and
market data
- Cboe FX Central scheduled to launch on Monday, June 29, 2020
LONDON, June 25, 2020 /PRNewswire/ -- Cboe FX
Markets, a Cboe Global Markets, Inc. (Cboe: CBOE) company and a
leading platform for institutional foreign exchange (FX) trading
globally, today announced plans to launch Cboe FX Central, a new
central limit order book (CLOB) designed to bring competition and
innovation to the FX market.
Cboe FX Central is designed to be an all-to-all market in which
all liquidity in the order book is firm, meaning it is instantly
executable by all clients. The new order book is scheduled to
launch on June 29, 2020 and will
offer trading in the most actively traded pairs in the spot FX
market: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF,
USD/CNH.
"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," said
Bryan Harkins, Head of Markets at
Cboe Global Markets.
Cboe FX Central builds on the traditional CLOB model,
recognizing the value contributed by liquidity providers (LPs) by
rewarding them with faster market data when their liquidity is at
or close to the best bid or offer (BBO), creating a deeper order
book, which in turn benefits liquidity takers. Cboe FX Central
market data will be available at three different speeds (real-time,
3 millisecond delay, 10 millisecond delay) and the speed at which
market data is delivered is determined by where the LP's liquidity
is relative to the Cboe FX Central BBO.
"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," said Jonathan Weinberg, Head of Cboe FX.
"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."
The order matching mechanics of Cboe FX Central are consistent
with other central limit order books in the FX market. All orders
in the book are subject to a minimum quote life of 25 milliseconds
and orders are executed on a price (displayed then hidden) / time
priority.
With the launch of Cboe FX Central, Cboe FX now offers a
comprehensive suite of trading services to meet the diverse needs
of the FX trading community, covering all manners of how clients
interact in the market. These include a firm order book (Cboe
FX Central), sweepable order book with curated firm and non-firm
liquidity (ECN), and full amount trading which provides clients
with a solution for larger order risk transference with low market
impact (Full Amount).
Cboe FX has seen strong growth this year. In the first quarter
of 2020, Cboe FX reported average daily value (ADV) traded of
$43.3 billion, earning a strong
quarterly market share of 15.7%. In May
2020, Cboe FX reported record market share of 17.3%,
surpassing the previous record of 16.6% set in December 2019.
For additional information on Cboe FX Central, please contact
the Cboe FX sales team at fxsales@cboe.com.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) is one of the world's largest
exchange holding companies, offering cutting-edge trading and
investment solutions to investors around the world. The company is
committed to defining markets to benefit its participants and drive
the global marketplace forward through product innovation, leading
edge technology and seamless trading solutions.
The company offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S. and European equities, exchange-traded products (ETPs), global
foreign exchange (FX) and volatility products based on the Cboe
Volatility Index (VIX Index), recognized as the world's premier
gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates one of the largest stock exchanges by value traded
in Europe and is a leading market
globally for ETP listings and trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
Media
Contacts
|
|
Analyst
Contact
|
|
|
|
|
Stacie
Fleming
|
Angela
Tu
|
|
Debbie
Koopman
|
+44-20-7012-8950
|
+1-646-856-8734
|
|
+1-312-786-7136
|
sfleming@cboe.com
|
atu@cboe.com
|
|
koopman@cboe.com
|
Cboe®, VIX® and Cboe Volatility
Index® are registered trademarks and Cboe Global
MarketsSM is a service mark of Cboe Exchange,
Inc.
Logo - https://mma.prnewswire.com/media/622233/Cboe_Logo.jpg