Cboe FX has launched a new solution called Cboe FX Point, which allows clients to manage one-to-one trading relationships utilising the platform’s technology, infrastructure and settlement relationships.
Noting that liquidity provision in the FX market is “deeply fragmented” right now, with institutions conducting their trading activity with a range of different counterparties across a variety of trading platforms, Cboe FX is billing this new solution as a means of simplifying this.
“Through Cboe FX Point, institutional clients are able to leverage Cboe FX’s technology, credit and straight-through processing infrastructure for low-cost management of one-to-one trading relationships, enabling them to connect to multiple selected counterparties more efficiently,” says the platform provider in a release issued today.
Bryan Harkins, Cboe’s co-head of markets, comments: “With the launch of Cboe FX Point we’re streamlining relationship-based trading in the FX market and allowing clients to focus on what is most important – sourcing the unique liquidity they need to achieve an optimal trading outcome. One of the key benefits of utilising Cboe FX Point is that there is no technology development work for either makers or takers, which enables clients to reduce the costs and complexity of connecting to multiple counterparties.”
Cboe FX Point offers liquidity providers different membership level – platinum, gold and silver – which are based on expected levels of participation. The higher the tier, the less variable cost for both liquidity provider and taker and there are no transaction or connectivity fees for liquidity takers interacting with platinum level member makers.
“The participation criteria is a great way for Cboe FX clients to identify genuine non-bank market makers, so we are proud to join Cboe FX Point at the highest level, as a platinum member. As Jump Liquidity continues to grow and focus on its direct trading business, Cboe FX Point will serve as an efficient and cost effective way for counterparties to connect to us for their spot FX and precious metals trading,” says Mark Bruce, head of sales at Jump Liquidity.
In addition, notifications of executions are restricted to counterparties, which the platform provider says will minimise market impact.