CME Group has unveiled plans to consolidate its two non-deliverable forward (NDF) liquidity pools on the EBS Market platform into a single trading venue. This strategic move will enable customers to trade 1-month Asian NDFs, LatAm NDFs, and African NDFs on the platform.
According to a press release by CME Group, the merger is set for October 2024, subject to regulatory approval. The primary objective of this integration is to establish a unified global trading environment that enhances market efficiency and solidifies EBS's position as a leading hub for centralized liquidity and price discovery in NDFs across various regulatory jurisdictions.
Paul Houston, Global Head of FX Products at CME Group, underscored the importance of this initiative. "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," said Houston. "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."
The EBS Market has been operating as a matching platform for nearly three decades, serving as a conduit connecting buyers and sellers worldwide. According to information provided on CME Group's Markets webpage, EBS Market has pioneered electronic NDF trading, particularly noted for its success with Asian 1-Month NDFs on a central limit order book. The platform is acknowledged for its firm liquidity and role as a primary market and reference rate, facilitating trading in non-deliverable forwards (NDFs) across six continents.
The Products webpage provided by CME Group states that EBS Market publishes daily high and low values on the CME Group website each weekday after 5:00 p.m. New York time. These figures reflect the highs and lows of the preceding trading day following the value date roll and will include both Market and Absolute (Touch) high/low figures.