EBS Direct Announces Rulebook Changes to Drive Adoption of the FX Global Code in the Industry

LONDON And CHICAGO, March 6, 2023 /PRNewswire/ — EBS, a leading provider of electronic trading platforms and technology services to the FX markets, today announced an update to its liquidity provider eligibility criteria for EBS Direct, its relationship-based, rate-driven market, in order to accelerate the industry’s transition to full FX Global compliance Code.

Building on his long-term commitment to the Code, von April 1st By default, EBS will deactivate liquidity providers from all EBS Direct liquidity pools unless they have subscribed to the Code. As a relationship-based platform, clients can maintain relationships with non-compliant liquidity providers if they wish, but must proactively choose to do so. Also effective April 1stEBS Direct will update its trading policy to lower “last look” limits from 200 to 30 milliseconds.

“As the market-leading FX spot and futures liquidity platform, the changes we are announcing today for EBS Direct will accelerate the industry’s transition to FX Global Code compliance,” said EBS Direct Jeff Ward, Global Head of EBS. “Our new trading rules will set minimum standards for our market, while our new transparency tools will help the ecosystem evolve.”

“Any action taken to help increase transparency in the foreign exchange market and support market participants’ compliance with the FX Global Code is welcomed by the Global Foreign Exchange Committee,” said its Chair, Andréa M. Maechler.

“Credit Suisse (CS) supports compliance with the FX Global Code and we appreciate EBS Direct’s work in promoting compliance,” he said John Estrada, Global Head of FX Trading at CS. “FX needs to keep moving forward and this work is a step in the right direction.”

“We applaud the efforts and progress made by both EBS and its LPs in tightening last look time thresholds,” he added Tsar Amrolia, Chairman and Co-CEO at XTX Markets. “Today’s changes to EBS are an important step in the industry’s journey to zero additional hold times in compliance with the FX Global Code.”

The updates follow a detailed review of trading on EBS Direct and show that last-look average hold times in 2022 were just 12 milliseconds and 96% of volumes came from liquidity providers who have declared their compliance with the FX Global Code.

To help customers across the ecosystem, EBS Direct is also enhancing its industry-leading and highly transparent transaction cost analysis (TCA) tools, including flow quality monitoring metrics, e.g. B. whether a counterparty is listed, and median, 90% and 99% last look hold times.

EBS also offers fixed, transparent and anonymous liquidity via their central limit order book EBS Market for spot and NDFs. More information about EBS can be found here: https://www.cmegroup.com/markets/ebs.html

As the world’s leading derivatives marketplace, CME Group (www.cmegroup.com) enables its clients to trade futures, options, spot and over-the-counter markets, optimize portfolios and analyze data – empowering market participants worldwide to manage risks efficiently and seize opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indices, forex, energy, agricultural products and metals. The Company offers futures and options trading through the CME Globex® platform, fixed income trading through BrokerTec and FX trading through the EBS platform. In addition, it operates CME Clearing, one of the world’s leading clearing providers for central counterparties.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange, and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“S&P DJI”). “S&P®”, “S&P 500®”, “SPY®”, “SPX®”, US 500 and The 500 are trademarks of Standard & Poor’s Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are services and/or trademarks of Dow Jones Trademark Holdings LLC. These marks are licensed for use by Chicago Mercantile Exchange Inc. S&P DJI does not sponsor, endorse, market or promote futures contracts based on the S&P 500 Index, and S&P DJI makes no representation as to the advisability of investing in such products. All other trademarks are the property of their respective owners.

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SOURCE CME Group

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