Starting September 21, 2025, the Chicago Mercantile Exchange (CME) is set to introduce new Spot FX basis spreads for US Dollar/Norwegian Krone and US Dollar/Swedish Krona on its FX Link platform, pending necessary regulatory approvals. This development will increase the total number of currency pairs available on CME FX Link to twelve.
The completed list of currency pairs will include:
– Australian Dollar/US Dollar
– Euro/US Dollar
– British Pound/US Dollar
– New Zealand Dollar/US Dollar
– US Dollar/Offshore Chinese Renminbi
– US Dollar/Canadian Dollar
– US Dollar/Mexican Peso
– US Dollar/Japanese Yen
– US Dollar/Norwegian Krone
– US Dollar/Swedish Krona
– US Dollar/Swiss Franc
– US Dollar/South African Rand
CME FX Link is designed as a liquid and efficient platform for trading FX swaps, taking advantage of existing over-the-counter (OTC) workflows. It establishes an unprecedented anonymous, automated link between CME FX futures and the OTC FX marketplace. This initiative aims to assist participants across the financial sector in managing their foreign exchange (FX) exposures effectively while accessing the capital efficiencies offered by FX futures.
The platform features a transparent central limit order book on CME Globex, which facilitates trading between OTC FX spot transactions and CME FX futures. This seamless connection between the two markets enhances trading opportunities and increases efficiency, thereby benefiting market participants.
The introduction of these new currency pairs signifies an ongoing commitment to enhancing market offerings and providing users with diverse tools to manage their financial operations adeptly. The addition of USD/NOK and USD/SEK spreads reflects an understanding of market needs and the demand for increased variety in trading options.
In summary, the upcoming expansion of CME FX Link with the inclusion of USD/NOK and USD/SEK basis spreads presents a substantial development aimed at improving liquidity and efficiency within the FX trading landscape. The initiative is expected to foster better management of FX risks for traders and institutions alike, while also further integrating with existing financial infrastructures.