Understand why more asset managers are turning to listed FX futures and options as an additional source of liquidity, and how the fundamentals of our markets – transparency, orderliness, equality and all-to-all access– are becoming increasingly attractive as managers worldwide work to fulfil their fiduciary obligations.
Learn how the asset manager community uses exchange-traded products to replicate OTC trading; read how managers are using listed FX contracts and what factors are driving this decision-making; understand how banks can facilitate these transactions – and find out how to get started.
43%
Open Interest in EUR/USD currently held by asset managers
30%
Increase over last five years in number of customers holding sizeable FX futures positions, with dealers and asset managers as the largest open interest holders*
$102bn
Q1 2020 average daily notional in CME-listed FX products, with single-day volumes surpassing $270bn
*source: CFTC
Spot and forwards
Accounts for more than 40% of all FX trading. FX futures are used as a proxy for OTC spot and forward outrights, with calendar spreads also acting as a proxy for OTC FX swaps. Liquidity is available in over 40 currency pairs, from G10 to EM.
FX swaps
Comprise almost 50% of all activity. FX Link provides a cleared, standardized, and credit-efficient alternative to FX swaps, available in eight currency pairs. FX Link enables participants to trade the spread between futures and the OTC market.
Listed FX options
Represents 4% of all OTC activity. FX options on futures are used to hedge OTC exposures, across 24 currency pairs, using the granularity of weekly and monthly expiries on Mondays, Wednesdays, and Fridays – all expiring at 10am NY, per OTC market conventions.
*As calculated by the 2019 BIS Triennial Survey.
View a full list of products across G10 and Emerging Markets – including futures, options on futures, FX Link, and cleared OTC FX products – and how they align to the OTC market.
Asset Manager Adoption and Use of FX Futures: Increasing Post-COVID
This article discusses how asset managers are using our futures markets to manage risk, what’s driving their decision-making, and how we have seen their appetite for our markets expressed in both holding large open interest positions and being translated into volume.
Investigating Total Cost Analysis, Quantitative and Qualitative Factors
Compare listed FX to OTC FX to understand the capital efficiencies FX futures and options can offer.
Fulfilling Fiduciary Requirements Whilst Remaining Competitive
Why more asset managers are augmenting FX trading with listed FX to diversify risk, reduce counterparty credit exposure, and more.
How to Use Futures to Replicate OTC Positions
Explore how to get cost-efficient, manageable synthetic exposure to OTC FX spot, forwards, and swaps.
Greenwich Associates on Total Cost Analysis and Uncleared Margin Rules, focused on FX Options
How listed FX options could help buyside firms save up to 70% on execution costs and reduce UMR funding costs by up to 86%.
Each quarter, we publish The FX Report, which assembles all of the key news, views, and stats the asset manager community needs to know.
Learn how FX futures work, explore how we ensure orderly markets, and access tools to help you optimize listed FX strategies.
CME Institute: how futures and options on futures work
Listings/expirations calendar
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