Beginning February 1, 2022, EBS will be introducing several new market enhancements ‒ aimed at maintaining and improving the current market ecology, whilst ensuring that EBS Market remains a valuable source of spot FX liquidity for all market participants.

Following extensive client feedback and data analysis, EBS will be introducing the following developments:

• Introducing a new Messaging Efficiency Program (EBS MEP) to improve its clients’ execution experience and quality of market data

By incentivizing its API customers to maintain a Minimum Median Order Life at Top of Book (TOB) or a minimum TOB Quote-Fill-Ratio. The MEP introduces an excess quoting surcharge on customers who fall below the required thresholds.

• Improving makers’ ability to quote tighter spreads by lowering Minimum Quote Life (MQL) from 50 milliseconds to 20 milliseconds

By lowering the MQL in conjunction with the new MEP, makers will remain incentivized to provide dealable liquidity for takers while facing lower risk when trying to improve TOB or adjust quotes to changing market conditions.

• Facilitating a seamless migration of liquidity when EBS markets migrate to Globex

By introducing two new transitional Market Support Programs (MSPs) aimed at maintaining a consistent spread and mid-point – and supporting price improving behaviors that tighten traded spreads. If you are interested in these programs, please contact your Account Manager.

In combination, these developments are aimed at making EBS markets more effective and are intended to:

• Improve spreads by mitigating adverse selection
• Maintain taker fill rates
• Encourage quality quoting to support execution experience and market data
• Facilitate a smooth transition of liquidity when EBS markets migrate to Globex

CME Group comments:

“These enhancements are the result of the time, thought, and commitment that our customers have demonstrated through the invaluable feedback provided ‒ and our shared goal to continue providing a primary marketplace built on the integrity of our prices and efficient management of our markets”.

Additional information about the enhancements can be found here.