Bryan Harkins, CBOE
New York and London - Hotspot, a CBOE company, and a market for institutional foreign exchange (FX) trading, has announced the first anonymous outright deliverable forward FX transaction executed on the platform.
Hotspot provides outright deliverable forwards on an anonymous central-limit order book and enables prime brokerage clients to post passive quotes. This allows for expanded trading activity from participants, who are now able to trade without being forced to cross the bid-offer spread.
Paul Millward, Head of Product Strategy, and Paul Reidy Head of Technology, spearheaded the project, which culminated in a one-month EURUSD trade, of $100,000 notional value.
Bryan Harkins, Head of U.S. Equities and Global FX at CBOE, commented: "When we initially acquired Hotspot, we made a very public commitment to growing the platform by adding thoughtful, additive functionality, and expanding product lines commensurate with customer feedback and demand. We also made clear any enhancements or expansions would fit our overall ethos of improving market structure for all participants, without compromising the unique dynamics of the FX market."
"This first, anonymous forwards trade, initiated over central-limit order book is a strong example of this approach, and we are pleased our unique solution, developed in close collaboration with some of our leading customers, will aid in expanding participation in a growing corner of the currency market."
Separately, non-deliverable forwards (NDFs) are to be formally listed on Hotspot's wholly-owned swap execution facility (SEF), previously called Javelin, in the coming weeks. This follows the filing of a revised Form SEF with the CFTC on March 31, 2017, which updated the SEF's rule book and set forth technical details of the Hotspot platform. The process of onboarding participants to trade NDFs is underway, with trading to start later this year.