CME to Add CNH to FX Link

CME Group is to launch USD/CNH trading on FX Link on Monday 25 November, amidst what the firm says is increasing client demand for the mechanism.

FX Link is CME’s CLOB for trading spreads between OTC spot and FX futures, in September it hit a record average daily volume of $5.75 billion. CNH will join AUD, CAD, CHF, EUR, GBP, JPY, MXN, NZD and ZAR as currencies supported on the venue.

The move comes as EBS continues to bask in the light of a record day for CNH as the US election results came in. As previously reported, EBS handled $34 billion of volume in CNH on November 6, but CME has provided further details in a client update seen by The Full FX.

Of the $34 billion, the vast majority, $30 billion, was executed on the EBS Market CLOB. During the busiest four-hour window, from 2am-6am GMT, CME says EBS Market saw more than 300 orders enter the market in CNH for amounts of $20 million or more.

This led to a top of book size 33% higher than the average for October (which, it should be noted, was a quieter month for FX platforms generally). The order arrival time median was around five-times faster than October also.

CNH is very much one of the success stories for EBS in recent years, although it needs to be recognised that CNH volumes generally have been going higher. Tbis is the second notable day for EBS this year, however, in March, it had its fourth busiest day in CNH, with over $24 billion as Chinese markets threatened meltdown, of that $20 billion was on the CLOB.