This special edition of The FX Report is focused on how CME Group FX products can be used to mitigate risk during these unprecedented times.

Key features

  • Market overview including Listed and EBS
  • Solutions for credit and capital challenges
  • Products to mitigate event and frontier risk
  • Tools and resources to understand and analyze the Listed FX market

This edition also explores why asset managers are increasingly turning to CME Group markets, from Listed to EBS, a trend that has continued over the last quarter:

  • Why asset managers are adopting futures and the factors driving their decision making
  • Why one firm, 7orca, is adding futures to their existing forwards strategies, and why both matter in currency overlay management
  • Why more asset managers are utilizing EBSI Institutional, the most comprehensive cash market work flow solution for OTC transactions, built for the buy-side.

The FX Report: Special Edition

Over the last quarter we have witnessed the extremes of an all-time low in the JPM G7 vol-index in January to heightened volatility in late March which drove the index to a 10-year peak of 15% on March 19th. As a result, the FX marketplace saw a significant increase in activity, as did all of the FX
platforms at CME Group.

This edition of The FX Report not only reports on activity in CME Listed FX Markets but for the first time introduces our EBS FX offerings across spot, forwards and NDFs – available across EBS Market, EBS Direct and EBS Institutional. Many of the features in this edition aim to highlight how CME FX Products can be used to mitigate risk during these unprecedented times.

This includes an overview of the credit and capital efficiencies of Listed FX Futures; a spot light on FX Link which allows participants to move exposures between OTC and Listed FX markets; developments in our Listed FX Options offering for managing event risk, and the margin offsets available within our G7 and emerging market FX futures offering and against other Listed Commodity Products – as participants assess risk across their total portfolio. We’ve also included a guide to education materials, resources, tools and exchange definitions you may need to help navigate our Listed markets. There is also a focus upon how CME Listed FX Futures are being used by the buy side, and by 7orca Asset Management, as well as a piece on EBS Institutional, which offers analytics, workflow solutions and choice of execution methods for the buy side community to optimize their costs and maximize efficiencies when trading OTC FX.

As we move past the quarter, the overall market is witnessing a drop in activity, with a reduction in volumes and risk appetite. Many of our customers are working from home or at contingency sites and it is remarkable how well the marketplace has adapted to this shock. We at CME Group would like to wish everyone and their families well during these challenging times.

Published on 08 May . Click here to view the original report on CME Group.