CME Group Unveils FX Market Profile Powered by EBS Quant Analytics

US derivatives exchange CME Group has launched an FX analytics tool in a bid to help traders monitor price relationships and compare FX listed futures and spot liquidity on one screen.

The new suite, dubbed FX Market Profile, is also intended to enable users to assess the quality of their historical execution, conduct comparisons of liquidity providers and make better-informed trade decisions. The comparison aims to help FX traders ensure best execution across different strategies by benchmarking their performance against CME’s listed FX futures and EBS’s spot trading markets.

FX Market Profile tool is powered by EBS’ Quant Analytics platform, which offers insights to analyse trade flows and execution efficiencies, as well as the ability to benchmark performance against others in CME Group’s electronic trading business.

This integration also provides FX Market Profile users with data through streams of trade information, market impact and alpha calculations via the EBS Quant Analytics platform.

With prices for 11 currency pairs, the FX Market Profile tool will provide clients with greater transparency and help them to uncover new trading opportunities, the exchange operator said.

CME Group has been expanding its foreign exchange offering, having recently launched a new FX options vol converter tool. The tool extracts market price data from the exchange’s central limit order book that is already functionally equivalent to OTC options and then creates a volatility grid by tenor and deltas for comparison purposes.

“Synchronizing and displaying two of the largest primary FX markets side by side on a single platform highlights the complementary nature of the EBS spot and listed FX liquidity pools,” said Paul Houston, Managing Director, FX Products at CME Group.

“From a risk management and trade execution standpoint, this tool demonstrates where clients can achieve best execution for their FX trades. The tool provides data to help traders determine the optimal time of day to transact in either market, calculate execution efficiencies, determine slippage costs and minimize the market impact of trades,” added Jeff Ward, Global Head of EBS.

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