GLOBAL - What claims to be the world's first centrally cleared, global foreign exchange (FX) platform for the over-the-counter market is fully operational.
FXMarketSpace, created jointly by Reuters and CME, said to be a major evolution in the industry started trading in spot FX across six major currencies against the US dollar, as well as four cross-currency pairs.
It is the first FX platform involving the full spectrum of market participants, including global and regional banks, asset managers, corporations, hedge funds and other market makers.
The platform believes is has the potential to transform the institutional FX market through its centrally cleared credit model. Some 76 customers have gone live or are joining.
It utilises the CME's central counterparty model and clearing function, with access via Reuters' premium desktop services and the Chicago exchange's API.
The platform provides trading anonymity through a central counterparty model so customers can buy and sell without disclosure of their identity.
All prices are available to participants. The increased price transparency will enable greater participation and increased liquidity, according to the platform providers.
The platform has been authorised by the Financial Services Authority as an alternative trading system.
Elsewhere, international central securities depositary Clearstream has launched the central facility for funds(CCF) aimed at providing a more efficient post trade solution for Luxembourg domiciled investment funds.
All funds shares handled by Schroders and Pictet have been transferred to this platform, which offers delivery versus payment settlement services, based on simultaneous exchange of cash and securities between fund distributors.
After Schroders and Pictet, participation will be offered to four other investment firms in the pilot phase and then be opened to all Luxembourg transfer agents anothers handing Luxembourg funds. The service could be applied to other fund domiciles.