EBS to Combine NDF Liquidity Pools

CME Group has unveiled plans to bring together its on- and off-SEF NDF liquidity pools on EBS Market late in 2024.

The two pools will be consolidated into one on the EBS UK MTF, operated by BrokerTec Europe in October 2024, subject to regulatory approval. CME says more information will be provided in the coming months and claims the move will “drive trading and operational efficiencies for the FX marketplace by creating a unified global liquidity pool for NDF trading”.

Ahead of the move, US customers will be able to access the EBS UK MTF as a prime customers, as long as their prime bank is not a US person. This will follow the standard EBS Prime model, where a participant will need to contract with both BrokerTec Europe for access to the EBS UK MTF and their designated prime bank(s).

“Amid continued fragmentation and rising complexity within the global FX market, the need for a unified, globally accessible primary trading venue in NDFs is greater than ever,” says Paul Houston, global head of FX products, CME Group. “Combining our two leading NDF trading platforms will improve access for participants around the world while expanding liquidity, improving price discovery and providing operational efficiencies for the marketplace.”

Although it does not break out volumes, EBS is widely understood to be the busiest NDF CLOB, currently it supports trading in 1-month Asian, LatAm and African NDFs.