- Increased client participation deepens liquidity and
further strengthens price discovery function
CHICAGO, Jan. 29,
2024 /PRNewswire/ -- CME Group, the world's leading
derivatives marketplace, today announced its Mexican peso and
Brazilian real FX futures contracts reached all-time average daily
volume (ADV) and open interest (OI) records in 2023. The increased
trading is resulting in deeper liquidity and broader client
participation, which in turn, strengthens reliance on these markets
as the premier source of price discovery for the broader FX
marketplace.
2023 LatAm FX futures trading highlights include:
- Mexican peso futures reached a record $1.8 billion in equivalent notional value
ADV.
- Brazilian real futures achieved a record $300 million in equivalent notional value
ADV.
- CME Group's LatAm FX futures complex hit an all-time ADV record
of 82,000 contracts (+7.4% year-over-year) and an all-time OI
record of 304,000 contracts (+20.4% year-over-year).
"The continued growth of the Mexican and Brazilian economies
combined with the current interest rate environment, is driving
more clients to trade CME Group FX futures," said Paul Houston, Global Head of FX Products, CME
Group. "As client participation continues to grow, we are focused
on building and maintaining consistent liquidity that will support
the long-term development of the electronic FX markets in
Latin America."
"CME Group's liquidity in Mexican peso futures has been a key
element to enhance our hedging activities, and thus to be able to
heighten our client's product offering," said Alejandro Vigil, Head of FX BBVA México.
"CME Group offers its clients unique access to liquidity from
local onshore market markers which are particularly valuable in
futures and options for non-deliverable currencies. These are
markets that require cumbersome local vehicles for direct access or
higher costs from global market makers," said Bernardo Gattass, Head of Itaú Unibanco's
Options trading desk. "It's the case for the Brazilian real which
is a large market with relevant local liquidity and large local
market makers such as Itaú, its largest bank by assets. Many
large global institutional investors would do well to add CME Group
to their price provider list for LatAm currencies and tap into the
liquidity of both global and local market makers, such
as Itaú for the real and many others."
As the world's leading derivatives marketplace, CME Group
(www.cmegroup.com) enables clients to trade futures, options, cash
and OTC markets, optimize portfolios, and analyze data – empowering
market participants worldwide to efficiently manage risk and
capture opportunities. CME Group exchanges offer the widest range
of global benchmark products across all major asset classes based
on interest rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and E-mini are trademarks of Chicago Mercantile
Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board
of Trade of the City of Chicago,
Inc. NYMEX, New York Mercantile Exchange and ClearPort are
trademarks of New York Mercantile Exchange, Inc. COMEX is a
trademark of Commodity Exchange, Inc. BrokerTec is a trademark of
BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The
S&P 500 Index is a product of S&P Dow Jones Indices LLC
("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500
and The 500 are trademarks of Standard & Poor's Financial
Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average
are service and/or trademarks of Dow Jones Trademark Holdings LLC.
These trademarks have been licensed for use by Chicago Mercantile
Exchange Inc. Futures contracts based on the S&P 500 Index are
not sponsored, endorsed, marketed, or promoted by S&P DJI, and
S&P DJI makes no representation regarding the advisability of
investing in such products. All other trademarks are the property
of their respective owners.
CME-G
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SOURCE CME Group