CME launches FX futures and spot liquidity comparison tool  

The tool from CME Group allows participants to benchmark their performance against CME's listed FX futures and EBS's spot trading markets.  

US derivatives exchange CME Group has launched a tool that will allow users to compare foreign exchange listed futures and spot liquidity on one screen.    

Powered by  CME’s FX analytics platform, Quant Analytics, the FX Market Profile tool allows participants to analyse trade flows and calculate execution performance by benchmarking against CME’s listed FX futures and EBS’s spot trading markets.   

From a risk management and trade execution standpoint, this tool demonstrates where clients can achieve best execution for their FX trades, said Jeff Ward, global head of EBS. The tool provides data to help traders determine the optimal time of day to transact in either market, calculate execution efficiencies, determine slippage costs, and minimise the market impact of trades.

The news follows CME Group’s continued development in new tools for foreign exchange derivatives recently. In September, the exchange launched an FX options volatility tracker for traders to monitor prices during periods of market stress.

The service aims to help FX traders monitor price relationships more effectively and make more informed decisions across markets, ensuring best execution across strategies.

Synchronising and displaying two of the largest primary FX markets side by side on a single platform highlights the complementary nature of the EBS spot and listed FX liquidity pools, said Paul Houston, managing director for FX products at CME Group. 

With prices for 11 currency pairs, including EUR/USD, GBP/USD, and USD/JPY, our new FX Market Profile tool will provide clients with greater transparency and help them to uncover new trading opportunities.