Copying and distributing are prohibited without permission of the publisher
CME has FX in its sights… again
06 November 2009
Does it make sense that less than a year after CME Group was forced to close FXMarketSpace – an aggressive move to expand its foreign exchange business – it is trying to prise open the market again? Michael Halls investigates.
The message came from the top in September. Craig Donohue, chief executive of CME Group, signalled the exchange was going to make another attempt to break into the promised land – read promised revenues – of the $2tr a day over-the-counter foreign exchange market.
The keys to the kingdom, he said, were to be found in ClearPort, the clearing platform CME had acquired with last year’s takeover of the New York Mercantile Exchange. Central counterparty (CCP) clearing would be the way in to the FX business.
The initial market reaction to Donohue’s statement was quizzical.
Hadn’t CME trumpeted its earlier move into foreign exchange in a joint venture with Thomson Reuters called FXMarketSpace? And why had that venture – and talk of a golden age of central clearing for FX trades – only lasted two years?
Untimely end
Launched in May 2006, FXMarketSpace was, as far as outsiders could gauge, a costly...
You must be logged in to view this page. If you are already a registered user please log in. Alternatively, you can request a free trial or subscribe.
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
