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CME FX Link Hits New Peak

CME Group says that its FX Link service achieved a record average daily volume of 20K contracts for October, equivalent to $2 billion in notional value and says the growth reflects “the perspective of a growing number of participants that FX Link is a viable proxy for FX swaps and a proven vehicle for macro risk management”.

The service, which was unveiled in late 2017, has seen steady but unspectacular progress, hitting a peak of $4.26 billion notional on 18 September, but also seeing volumes above $3 billion notional on three days that month and two days in October.
CME says that FX market participants are using FX Link to efficiently manage funding requirements; execute trading opportunities related to changes in short-term rates; enact yield enhancement strategies; manage FX hedges and futures basis risk; and support FX options delta hedging.

Colin Lambert

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