CME to Create FXMarketSpace

[gc01]

CME to Create FXMarketSpace–The World’s First Centrally-Cleared, Global FX Marketplace

http://www.cme.com/about/press/cn/06...ject18424.html

Due to start first quarter of 2007.

If they get it right then it has the potential to be a much better choice than retail forex market makers.

[RedDuke]

Yep, I got e-mail notification from CME this morning. If their spread is realistic, it will be an end of most of forex MMs.

[snow]

or just another bucketshop...

[RedDuke]

Hi Snow,

You've got to be kidding. Chicago Mercantile Exchange a bucket shop?????? If their spreads will be reasonable, it will be THE PLACE to trade spot fx. I think they will make it commission based with tight spreads. We might even see 1 pip on eur/usd.

Imagine trading spot fx, with CME guarantee.

redduke

[gc01]

Definitely not bucketshop. It should be a system with real settlement of real currencies. The test of whether is succeeds or not will be the spreads and transactions costs and how many of the existing futures brokers actively market it to their customers.

[sunabeach]

It could turn out to be like when they brought the e-mini S&P to the small trader market. Now they even have an e-mini version of the (EC) Euro.

[snow]

Well I certainly hope so guys. This should at least light a fire under every other brokers ass and either kick them inline or put them out of business...

But remember the strict regulation in place for the futures market will not be present for the otc spot fx market .

But yes , this is potentially great news ....Im certainly interested .

[bobnat]

Originally Posted by RedDuke

Imagine trading spot fx, with CME guarantee.

redduke

Once they get the bugs ironed out, I'll sign up. I also believe that this could be the beginning of the end for the current model of retail fx. And that would be a good thing.

Nat