CME Group reports record FX Link trading volumes
International derivatives marketplace CME Group today announced that FX Link volume has reached a new, single-day record of 82,900 contracts (representing over $7.2 billion in notional value) on June 16. The prior FX Link daily volume record was 77,146 contracts on March 10, 2020.
Paul Houston, Global Head of FX Products, CME Group, comments:
“This milestone reflects growing adoption of FX Link as a tool to manage risk. As the world’s first anonymous and centralized FX swaps liquidity pool, FX Link allows participants to gain access to alternative pricing of swaps relative to OTC, and benefit from the capital efficiencies which come from using FX futures. As a result of the increased client participation in 2022, top of book spreads have reduced and we have seen strong growth in order book depth.”
“We are excited to see market participants leverage FX Link as a source of FX swap liquidity. Deutsche Bank is a major liquidity provider to this marketplace as part of our market-leading portfolio of electronic trading products,” said Shuo Wu, Global Head of Forward eTrading, Deutsche Bank.
“FX Link provides market participants with another tool to manage risk and gain efficiencies in their FX trading activities,” said Liyan Yu, Head of eFX Swaps Trading at J.P. Morgan. “We see more participants leveraging FX Swaps to diversify their FX risk and our leading electronic trading franchise is well-positioned to cater for this growing market.”
In addition to the overall volume record, FX Link achieved a new single day record in USD/JPY of 26,677 contracts, representing over $2.5 billion in notional. In June 2022, FX Link average daily volume (ADV) has grown to over 43,000 contracts per day, up from nearly 15,000 contracts per day during June 2021.