EBS Has Big CNH Day
Posted by Colin Lambert. Last updated: March 26, 2024
As has been noted in these pages for some time, there is a continuing debate over the value and usefulness of the CLOB (central limit order book) in FX markets, with volumes on the primary venues in long-term decline. The industry has been reminded of the value of the model, however, with news from EBS regarding last week’s volatility in China’s markets.
With Chinese markets under pressure and the yuan also struggling, EBS says it had its fourth biggest day ever in CNH with $24.2 billion trading on Friday 22 March. Within this, EBS says that over $20 billion was traded on its CLOB, EBS Market.
The surge in CNH trading on a busy day will come as some relief to EBS’ owners, CME Group, highlighting as it does, that in times of strife, the firm liquidity pool still holds sway. EBs also had a good day in Asian NDFs, with volume in the one-month across its Asian NDF product set trading nearly $13 billion on the CLOB.
The surge in activity comes amidst higher volume generally in FX markets – both Cboe FX and Euronext recorded their two highest volume days of the month on Thursday 21 March (the peak for both) and the following day.