The EBS Market central limit order book is widely regarded as the primary market for major spot FX pairs and Asian non-deliverable forward (NDFs), including the one-month outright in Taiwanese dollar (TWD). A unique aspect to our marketplace is genuine order flow coming together from a truly manual customer base, sat across trading institutions globally.
In August 2023, EBS Market launched the Size Priority Matching Algorithm in the TWD NDF pair, incentivizing the placement of orders with larger shown inventory, while maintaining price improvers’ position at the front of queue. When shown to the market, these larger orders reinforce depth of book, resilience of liquidity and can reduce market impact from trades. Since the release of the matching logic change, EBS has noted the following positive results from the OFF SEF TWD NDF order book:
- 21% of all filled orders in 1M TWD OFF-SEF were $3 million and above
- 8% increase in average order size between core hours of 0000 to 1000 GMT
- 65% increase in shown orders placed with $3 million and above
These are early indications that emerging market FX traders on EBS Market TWD NDF have adopted an approach to show greater inventory, and the feedback from customers has been encouraging.
Increased market activity led to Q4 2023 being one of the highest traded volume quarters for USD/TWD one-month outright NDF on EBS, and November 21 the all-time record volume day for the OFF-SEF liquidity pool for USD/TWD NDF with $3.76 billion traded.
By bringing genuine liquidity together, and prioritizing larger notional interest in the order book, EBS Market looks to further enrich depth of liquidity, and consequently reduce market impact of trading activity.
To learn more or to connect to EBS Market, contact FXTeam@cmegroup.com.
EBS Market
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