Cboe SEF Expands Offering with Two Newly-Listed NDFs

Cboe Global Markets, Inc. (Nasdaq: CBOE) has launched trading of several new non-deliverable forwards (NDFs) on its swap Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term facility, Cboe SEF. This includes the support of two newly-listed NDFs following strong interest from buy-side firms.

In December 2017, Cboe SEF began supporting non-deliverable FX forwards. Since then, the expanded FX offering has grown to reflect the group’s broadest foray into the NFD market to date. Following today’s expansion, the SEF now supports trading for a total of twelve currency pairs.

Growing demand fueling offering

The newest NFDs to be included on Cboe SEF include the USD/Russian ruble (RUB) and USD/Peruvian Sol (PEN). Bryan Harkins, Executive Vice President and Co-Head, Markets Division, at Cboe, commented: “We have seen success in trading non-deliverable forwards, which launched on Cboe SEF late last year.”

Interest for NFD trading on the Cboe SEF has indeed increased since its inception. One of the main impetuses for the offering has been regulatory obligations surrounding the trading of NDFs. Dodd-Frank legislation stipulates that select market participants trade swaps on SEFs. To help reconcile these requirements, the group has facilitated this trading using proprietary CBOE technology, namely across emerging markets currencies.

“As we continue to build this new market, we have received strong interest from firms across the globe, particularly buy-side firms, many of which have been interested in trading these newly-listed currency pairs. We will continue to work with our customers to expand our currency pair universe to meet their diverse needs,” added Mr. Harkins.

While Cboe has not presently disclosed any plans to strengthen its NDF offering, the current demand for these instruments remains quite high. With Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and emerging markets in focus in 2018, it is likely that Cboe SEF will see the support of an additional tranche of currency pairs in the near-future.