Digital Vega and CME Group launch new FX options block trading service
Service will enable buy-side participants to use existing OTC workflows on Digital Vega’s multi-bank platform to request quotes and trade blocks of FX options on futures.
Service will enable buy-side participants to use existing OTC workflows on Digital Vega’s multi-bank platform to request quotes and trade blocks of FX options on futures.
New weekly futures contracts are sized at one fiftieth of a bitcoin and will be cash settled at 4pm EDT/EST every Friday.
The plan is to build a new private Google Cloud region to support CME Group’s global trading, offering derivatives traders access to “cloud-based, ultra-low-latency networking and high-performance computing”.
US corporate bonds began trading on 20 May, with the remaining products expected to be live by the end of next month.
Development builds upon CME Group’s launch of €STR futures in October 2022 as a complement to SOFR futures.
Following a string of new NDFs platforms launched into the market – particularly in Asia – and volumes continuing to grow, Annabel Smith explores demand for NDF algorithmic trading capabilities on the buy-side, unpacking the need for greater liquidity and transparency to take automation mainstream.
Subject to regulatory approval, the new futures contracts will be based on the Bloomberg US corporate index and the Bloomberg US high yield very liquid index.
The options will be available on S&P 500 annual dividend index futures from 29 January.
Participants across CME Group, MillTechFX, and DIGITEC unpack the role foreign exchange derivatives and volatility will play in 2024.
Market experts from across Invesco, BNP Paribas Asset Management, Cassini and CME Group share their insights on the market’s quest to use market volatility to its greatest advantage over the next 12 months and the key challenges going forward.