Cboe Strengthens FX Business with Launch of Cboe FX Point

Cboe’s institutional FX arm has launched an electronic foreign exchange trading venue that permits certain institutions to enter into spot transactions with their preferred counterparties to meet their specific trading needs.

Dubbed ‘Cboe FX Point,’ the new direct execution model provides institutional investors with a flexible range of options including the ability to create custom, relationship-based connections. This helps simplify pricing options, including transaction and connectivity fees for clients interacting with certain Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term providers.

An eligible participant, who meets certain criteria to apply to interact on the platform, may designate one or more Cboe FX users as Cboe FX Point takers. Upon such designation, the chosen user may accept or decline, by notification to Cboe FX, to interact with such Cboe FX Point market maker. Notification of executions is restricted to counterparties, minimizing market impact.

Cboe FX sweetens offering with liquidity malmanagement

Cboe FX Point offers liquidity providers different membership options, including Platinum, Gold, and Silver status, which will be assigned based on expected levels of trading volumes.

Liquidity management has been a key focus at Cboe FX over the past year, coupled with adding extensive Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term capabilities. During this time, the platform created a liquidity management team in a bid to increase the number of matches on the venue.

Cboe’s institutional spot FX platform saw its average daily trading volumes amounting to $36.5 billion in Q1 2019, while its market share hit a record high of 15.8 percent in the same quarter.

Commenting on the news, Bryan Harkins, Cboe’s Co-Head of Markets, said: “With the launch of Cboe FX Point we’re streamlining relationship-based trading in the FX market and allowing clients to focus on what is most important – sourcing the unique liquidity they need to achieve an optimal trading outcome. One of the key benefits of utilising Cboe FX Point is that there is no technology development work for either makers or takers, which enables clients to reduce the costs and complexity of connecting to multiple counterparties.”

Mark Bruce, Head of Sales at Jump Liquidity, added: “The participation criteria is a great way for Cboe FX clients to identify genuine non-bank market makers, so we are proud to join Cboe FX Point at the highest level, as a Platinum Member. As Jump Liquidity continues to grow and focus on its direct trading business, Cboe FX Point will serve as an efficient and cost effective way for counterparties to connect to us for their spot FX and precious metals trading.”