Want to Stream Full Amount on CboeFX? Be Code Compliant
Posted by Colin Lambert. Last updated: July 13, 2022
CboeFX says that from 1 August, only liquidity providers that have a signed Statement of Commitment to the FX Global Code will be allowed to stream to the firm’s Full Amount venues in NY5 and LD4.
CboeFX’ Full Amount venues aggregate liquidity at a single price to a desired size level and from next month these streams will be from Code adherers only.
In July 2021, the Global Foreign Exchange Committee published an updated version of the Code with several changes and set an informal deadline of one year for market participants to assess the changes and their levels of adherence before re-committing to the Code. Probably the highest profile changes were to LP disclosures and the recommendation that LPs operate last look with a zero additional hold time. With the GFXC’s deadline approaching many – but certainly not all – LPs have updated their disclosures and expressly committed to zero additional hold time, and Cboe’s move is likely to ratchet up the pressure a little more.
The last two months have seen many central banks complete their review and re-commit to the Code, they have also taken advantage of the opportunity to remind market participants that they too are expected to update. This has been accompanied by several liquidity consumers requesting “Code-only” liquidity from their chosen trading platforms.
This is the latest in a series of moves made by CboeFX to ramp up transparency levels in the FX market, last year it started providing average response times and cost of reject data to customers and then last month started publishing responses times publicly along with percentage of volume executed anonymously on the platform.