FXMarketSpace
| FXMarketSpace | |
| Founded | Launched March 26, 2007 |
|---|---|
| Headquarters | London |
| Key People | Mark Robson, CEO; Rick Sears, president/chief sales officer |
| Products | Cash forex trading with central counterparty clearing |
FXMarketSpace was a centrally cleared over-the-counter (OTC) foreign exchange (FX) platform owned by CME Group and Thomson Reuters. It opened in may of 2006 and was shuttered on Oct. 17, 2008.[1]
The global platform combined the central counterparty model and clearing function of CME Group and fully anonymous execution (features not present in the traditional over-the-counter forex market) with Reuters' global distribution network and straight-through processing capability.
History[edit]
FXMarketSpace was formed in 2006 through a 50/50 joint venture between Reuters and CME to meet the increased growth in the global FX market and the need for central counterparty clearing and straight-through processing globally. FXMarketSpace had representative offices in major money-market centers - London, New York, Chicago, Tokyo and Hong Kong.
Products Offered/Hours of Operation[edit]
FXMarketSpace offered spot trading in select G7 currencies which represent 78 percent of FX trading activity, including:
- The euro
- Japanese yen
- British pound
- Australian dollar
- Swiss franc
- Canadian dollar
- Four cross currency pairs (Euro/Yen, Euro/Pound, Euro/Swiss Franc and Pound/Yen).
Continuous trading was between the hours of 3 p.m. (15:00) Central Time (Chicago) on Sunday through 4 p.m. (16:00) Central Time (Chicago) on Friday.
Access through Reuters/CME Group[edit]
FXMarketSpace was be accessed through a variety of different methods, including CME's iLink API, Reuters Dealing 3000 and 3000 Xtra desktops, Reuters standard transactions API, select ISVs and eFX portals of participating clearing member firms. Firms can also utilize existing connections with CME Group to facilitate their connection to FXMarketSpace, which in and of itself provided some additional efficiencies and reduced costs. Customers using FXMarketSpace from a Reuters terminal could use their existing Reuters infrastructure.
News[edit]
- On Oct. 10, 2008, CME Group and Thomson Reuters issued a press release saying they would take steps to close FXMarketSpace by Oct. 17, 2008.[2]
- In September 2008, it was rumored in a news report that FX MarketSpace might be closing down due to lack of interest, but it was not confirmed by Reuters or CME Group.[3]
- On Dec. 7, 2007, FXMarketSpace announced that it was launching a profit-share program that will allocate 37.5-percent of its profit between its most active trading customers. The program, called "JumpBall," was open to both bank and non-bank participants and rewards the 16 most active traders on FXMarketSpace. Qualification for JumpBall began on Jan. 15, 2008, and ran until Sept. 30, 2008. Customers with the highest average daily volume during the qualification period will have the right to receive a share of FXMarketSpace profits for up to four years. The four most active banks and four most active non-bank participants with the highest percentage of profit share receive the greatest share, and an additional eight customers (both banks and non-banks) are able to participate in a smaller profit share in successive one-year profit share pools.[4]
- In June 2007, FXMarketSpace and Traiana, a firm which provides global banks, broker/dealers, buy-side firms and e-trading platforms with solutions to automate post-trade processing of financial transactions, announced the integration of their platforms, increasing automation in the processing of trades by prime brokers. Traiana Harmony provided post-trade processing for electronic deal confirmations of trades dealt on FXMarketSpace to FX prime brokers in the format of their choice while leveraging existing connectivity into the Traiana Harmony Message Centre. Prime brokers who join the FXMarketSpace platform can use their existing processes and will not incur additional processing costs. [5]
Also See[edit]
CME Group foreign currency products
Resources[edit]
- "Anonymous FX market model mooted at Sibos," Oct. 4, 2007
- FX MarketSpaceMarketSpace: creating value through innovation
- RISC FX Processing for FXMarketSpace, Rolfe and Nolan
References[edit]
- ↑ CME Group and Thomson Reuters to Close FXMarketSpace Joint Venture. CME Group.
- ↑ CME Group and Thomson Reuters to Close FXMarketSpace Joint Venture. CME Group.
- ↑ "CME to Withdraw from FX Marketspace?". The Weekly FiX.
- ↑ "FXMarketSpace Announces Jumpball Profit Share Programme". FX MarketSpace.
- ↑ "FXMarketSpace and Traiana Announce Automated Connectivity For FX Prime Brokers. FX MarketSpace.