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CME FX on Reuters Expands Reach with Four New Clearing Firms

Strategic Insights

— 2 min read

CME and Reuters, a leading global information company, announced the expansion of their CME FX on Reuters service with four new clearing firms, Calyon Financial, JPMorgan, Lehman Brothers, and Refco, joining the existing seven clearing firms. This move further enables the service to facilitate trading for CME and Reuters end-users, increasing the reach of CME FX on Reuters. The four firms join ABN AMRO, Bank of America, Barclays Capital, HSBC, Royal Bank of Scotland, Skandinaviska Enskilda Banken, Societe Generale, and Fimat International Banque SA, which formed the beta test group for the service.

Key Takeaways:

  • CME FX on Reuters, a joint service between CME and Reuters, has expanded its reach with the addition of four new clearing firms: Calyon Financial, JPMorgan, Lehman Brothers, and Refco.
  • The new clearing firms join the existing seven clearing firms, increasing the service's impact and accessibility to CME and Reuters end-users.
  • CME FX on Reuters allows for trade processing with a straight-through approach, with executed trades routed through Reuters ticket output feed for STP trading.
  • The service simplifies usage for cash market participants by displaying CME FX futures in spot-equivalent terms, facilitating price comparisons between the two markets.
  • CME FX on Reuters has over 51 million FX contracts traded last year, with a notional value of over $6.2 trillion, and has received the 2004 eFX award for the best electronic futures platform.

Statistics:

  • Notional value of FX contracts traded at CME in 2004: over $6.2 trillion
  • Number of FX contracts traded at CME in 2004: over 51 million
  • Total deposits managed by CME by March 31, 2005: $44.3 billion, including $3.99 billion in deposits for non-CME products
  • Daily settlement payments made by CME: approximately $1.42 billion
  • Number of organizations using Reuters Dealing 3000 platform: over 4,000
  • Number of FX and money market professionals using Reuters Dealing 3000: nearly 18,000
  • Total revenue of Reuters in 2004: GBP2.9 billion

Sources:

  • M2 PRESSWIRE: CME FX on Reuters expands reach and to launch in Asia (April 18, 2005)
  • Reuters, "Today's announcement highlights the market interest and good progress we're making on the roll out of CME FX on Reuters." - Michael McCorkle, Reuters Treasury Business Manager
  • CME, "We are extremely pleased with how things have gone thus far, and with the prospects for the future. We plan to continue the roll-out of CME FX on Reuters within the global FX business at HSBC." - Dan O'Sullivan, Head of Spot and Forward Trading, HSBC Bank USA

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