The deal significantly expands CME's distribution and enhances Reuters customers' ability to seamlessly trade FX spot, forwards and futures. Reuters FX trading customers, using Dealing 3000 in 3,500 institutions located in 123 countries, will be able to access CME's electronically traded eFX futures markets. For the first time CME's eFX futures market will be directly accessible by a significant cross section of the interbank FX spot trading community.
The two companies will be showcasing their joint offering at the European ACI Congress, opening this week in London from 27-29 May.
"The distribution of CME's eFX markets through Reuters unparalleled trading network combines the resources of two of the world's most dynamic FX markets into one seamless trading environment creating additional growth potential for both," said CME Chairman Terry Duffy. "This is yet another example of how CME is working to forge creative business alliances that deliver value to our customers and shareholders."
Under the agreement, CME's eFX markets, traded on its GLOBEXÂ® platform, will be easily accessed via Reuters Dealing 3000 desktop with straight through processing of trades in Reuters Ticket Output Feed (TOF) standard. Quotes on CME's eFX products will appear in spot (or cash) equivalent terms to further ease usage for cash market participants by facilitating price comparisons between the two markets, potentially bringing greater pricing efficiencies to both. Because of the financial guarantees provided by CME's Clearing House, banks will also be able to trade with non-bank participants in a credit-enhanced environment. In order to facilitate the order execution and risk management, Reuters and CME have selected FFastFill Plc and Future Dynamics Ltd independently to provide the related services.