LONDON and CHICAGO, March 6,
2023 /PRNewswire/ -- EBS, a leading provider of
electronic trading platforms and technology services in foreign
exchange markets, today announced an update to its liquidity
provider eligibility criteria for EBS Direct, its
relationship-based quote-driven market, to help accelerate the
industry shift towards full compliance with the FX Global Code.
Building on its long-term commitment to the Code, from
April 1 EBS will disable liquidity
providers from all EBS Direct liquidity pools by default unless
they have signed up to the Code. As a relationship-based platform,
clients will be able to maintain relationships with non-compliant
liquidity providers if they choose to, but they must proactively
opt to do so. Also effective April 1,
EBS Direct will update its dealing policy to reduce its "last look"
thresholds from 200 to 30 milliseconds.
"As a market-leading platform for FX spot and forwards
liquidity, the changes we're announcing today for EBS Direct will
accelerate the industry shift towards FX Global Code compliance,"
said Jeff Ward, Global Head of EBS.
"Our new trading rules will create minimum standards for our market
while our new transparency tools will help the ecosystem
evolve."
"Any measures that help to increase transparency in the foreign
exchange market and support FX Global Code adherence by market
participants are welcomed by the Global Foreign Exchange
Committee," said its Chair Andréa M. Maechler.
"Credit Suisse (CS) supports adherence to the FX Global Code and
we appreciate the work done by EBS Direct to encourage compliance,"
said John Estrada, Global Head of FX
Trading at CS. "FX must continue to move forward and this
work is a step in the right direction."
"We congratulate the efforts and progress made by both EBS and
its LPs in tightening the thresholds for last look times," added
Zar Amrolia, Chairman & Co-CEO
at XTX Markets. "Today's changes from EBS are an important step
forward in the industry's journey to zero additional hold times in
line with the FX Global Code."
The updates follow a detailed review of trading on EBS Direct,
revealing that average last look hold times in 2022 were just 12
milliseconds and 96% of volumes were with liquidity providers that
have stated their adherence to the FX Global Code.
To help clients across the ecosystem, EBS Direct is also
enhancing its industry-leading and highly transparent transaction
cost analysis (TCA) tools, including metrics to monitor flow
quality, such as whether a counterparty is co-located with the
exchange, and median, 90% and 99% last look hold times.
EBS also provides firm, transparent and anonymous liquidity via
its EBS Market central limit order book for spot and NDFs. For more
information on EBS see here:
https://www.cmegroup.com/markets/ebs.html
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.
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trademark of Commodity Exchange, Inc. BrokerTec and EBS are
trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively.
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SOURCE CME Group