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Cboe Global Markets, Inc. (Cboe: CBOE | NASDAQ: CBOE), one of the world’s largest exchange holding companies, today announced the launch of trading on Cboe SEF, a next-generation swap execution facility (SEF).
The Dodd-Frank regime, enforced by the Commodity Futures Trading Commission, mandates that certain market participants trade swaps such as non-deliverable FX forwards (NDFs) on SEFs. Today’s launch means market participants can trade NDFs on emerging markets currencies for the first time on proprietary Cboe technology.
In keeping with Cboe’s commitment to power customers’ potential to stay ahead of an evolving market, Cboe SEF delivers a next-generation market model that incorporates:
- A fully anonymous central limit order book with firm all-to-all trading available to all Participants;
- Configurable firm and non-firm streaming quotes for tailored liquidity needs;
- Curated liquidity pools to meet Participants’ execution criteria;
- A diverse network of Participants resting passive liquidity and a wide distribution network for Market Makers;
- Pre-trade Net Open Position (NOP) credit checks and real-time risk management.
Bryan Harkins, Head of U.S. Markets & Global FX at Cboe, said: “Our next generation SEF was built on a flexible trading and settlement model that opens unique liquidity opportunities for our clients in the NDF market. We are very excited that we were able to further expand our FX offerings by delivering this new NDF market.”
Cboe FX has enjoyed a strong 2017. In the first three quarters of the year, the platform traded average daily notional value of $28.6 billion in spot FX, up 6.2 percent from full-year 2016. Further, Cboe FX’s spot FX market share1 in October rose to 14.5% percent.
