CME Group Gets the Green Light to Offer OTC FX Clearing Services

Derivatives marketplace CME Group has announced that it has reached an important milestone, as the Commodity Futures Trading Commission (CFTC) has given it the all clear to offer Over-the-Counter (OTC) Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term clearing services.

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Following clearance, the firm will offer cash-settled OTC forex options in seven currency pairs, including EUR/USD, AUD/USD, USD/CHF, USD/CAD, EUR/GBP, and USD/JPY. It will offer trades with an expiration time of up to two years.

Paul Houston, the Global Head of Forex Products at CME Group, commented that this is a significant step forward for the company: "In addition to our cleared NDFs and cash settled forwards, which are already live for clearing, we will work toward launching G7 FX Options later this year so that clients will have a holistic FX clearing solution that offers unparalleled portfolio margining opportunities between cleared FX products and our Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term listed FX futures and options.”

Recently, the company reached a new high in open interest, recording 129 million contracts on June 14, 2017. This was attributed to the Federal Reserve's raising of interest rates. CME Group saw another high earlier this year when the United States Central Bank announced its decision to start cutting off bonds and other securities. This decision had been attributed to the bank’s confidence in the United States economy and the strengthening job market.

At the beginning of the June, CME released the results of its aggregated volumes of May 2017. The firm’s most recent figures showed a slight increase in average daily trading volumes.