CME Group said on Monday that it plans to launch FX TAPE+, a new central reference pricing service designed to provide a comprehensive offer for the Foreign Drainage Market (FX). The platform is expected to follow later this year.
The company explained that the FX TAPE+ will collect the company’s price data from central request books, including FX Futures, EBS Market, FX Spot+ and FX, which provides what the company describes as a more transparent and unbiased offer for FX market conditions.
“By combining price information from our network of 1,400 institutions and more than 100,000 active participants in the foreign currency market, CME Group is in a unique position to enhance transparency in the FX market,” said Paul Houston, the global head of FX products at CME Group.
CME added that unlike some current industrial standards, which depend on the counseling or coordinated pricing, TAPE+ FX will only depend on implementable liquidity.
At launch, it will cover 10 main currencies and will provide a “real” average price, calculated using the trade book data and ordering FX places in CME.
CME stated that the new service will share the reference data every 250 mm via the WebsockTEC app and will also provide historical data files, allowing the market participants to analyze the implementation of trade and cost the costs better.