CME to offer electronic forex trading through Reuters terminals

Reuters customers will have direct access to the professional interbank foreign exchange markets via the Chicago Mercantile Exchange’s (CME) electronic trading platform, Globex, later this year.

Traders will enjoy straight-through processing of trades in Reuters' ticket output feed, officials said. Quotes will appear in spot or cash equivalent terms. Reuters and the CME said the involvement of the exchange's clearing house will provide a credit-enhanced trading environment for banks trading with non-financial counterparties. Ffastfill and Future Dynamics have been selected to independently provide related services in order execution and risk management, the companies said.

The service will go live in the fourth quarter, initially in London, with additional markets in Europe, Asia and North America following. Reuters said its customers, using Dealing 3000 terminals in 3,500 institutions in 123 companies, will be able to access CME’s electronically traded forex futures markets.

The agreement marks the first major linkage of sell-side traders in the interbank foreign exchange market to CME electronic forex futures markets, paving the way for more dynamic and efficient markets, the companies said.

Craig Donohue, chief executive of the CME, said the exchange is in the midst of one of its biggest periods of growth, being driven largely by electronic foreign exchange.