The Greenwich Perspective: A Bright Future for FX Futures

Greenwich Associates recently published a paper assessing the value and viability of FX futures as a proxy to the OTC FX market.

Methodology
  • The report assesses the economic benefits of using FX futures through a quantitative total cost analysis (TCA) model and by analysing the impact of regulatory change to the FX market.

  • Greenwich interviewed 41 buyside institutions and nine major FX sellside institutions to validate inputs to the quantitative TCA.

Initial Findings
  • On average, it was found that in certain circumstances, FX futures can generate upwards of 75% savings over OTC markets. Naturally the exact savings depend upon institution, trading style, holding time, currency pair etc.

  • The report also highlights the impact of Basel III costs and the implications of MIFID II on FX markets. For the buyside it was found that these costs were not yet fully priced into bid-offer spreads and other fees, but when this inevitably happens the cost advantages of FX futures become even more pronounced.

Read the Report

To access this report, provide your details and let us know if you would like to discuss this in more depth

April 15, 2015
12:00 p.m. – 1:30 p.m.
20 S. Wacker
CME Group Headquarters
Chicago, IL
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*Seating is limited. Registrations will be taken on a first come first served basis.

Featured Speakers:

Margaret Spellings
President, the George W. Bush Presidential Center and former U.S. Secretary of Education

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque malesuada rhoncus ante in tempor. Suspendisse ac odio vel odio facilisis tincidunt in quis sapien. Morbi auctor ipsum eget arcu hendrerit vestibulum. Nullam vulputate pulvinar ante, ac feugiat ex lobortis nec. Nam venenatis fermentum velit vitae suscipit. Nam lacinia pulvinar nisi non suscipit. Nulla molestie augue quis ipsum mollis volutpat. Nunc at arcu pharetra, lacinia nulla et, fringilla orci. Aliquam vitae arcu ac ante luctus ultricies. Nullam elementum risus tortor.

Sed venenatis aliquet libero eget ultricies. Donec luctus et orci non pulvinar. Donec vehicula, justo ut efficitur tristique, neque ante convallis lorem, id vehicula erat enim a dui. Quisque pharetra urna non imperdiet rhoncus. Vestibulum quis faucibus velit.

Diana Mendley Rauner
President, Ounce of Prevention Fund

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque malesuada rhoncus ante in tempor. Suspendisse ac odio vel odio facilisis tincidunt in quis sapien. Morbi auctor ipsum eget arcu hendrerit vestibulum. Nullam vulputate pulvinar ante, ac feugiat ex lobortis nec. Nam venenatis fermentum velit vitae suscipit. Nam lacinia pulvinar nisi non suscipit. Nulla molestie augue quis ipsum mollis volutpat. Nunc at arcu pharetra, lacinia nulla et, fringilla orci. Aliquam vitae arcu ac ante luctus ultricies. Nullam elementum risus tortor.

Sed venenatis aliquet libero eget ultricies. Donec luctus et orci non pulvinar. Donec vehicula, justo ut efficitur tristique, neque ante convallis lorem, id vehicula erat enim a dui. Quisque pharetra urna non imperdiet rhoncus. Vestibulum quis faucibus velit.

Margaret Spellings
President, the George W. Bush Presidential Center and former U.S. Secretary of Education

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Quisque malesuada rhoncus ante in tempor. Suspendisse ac odio vel odio facilisis tincidunt in quis sapien. Morbi auctor ipsum eget arcu hendrerit vestibulum. Nullam vulputate pulvinar ante, ac feugiat ex lobortis nec. Nam venenatis fermentum velit vitae suscipit. Nam lacinia pulvinar nisi non suscipit. Nulla molestie augue quis ipsum mollis volutpat. Nunc at arcu pharetra, lacinia nulla et, fringilla orci. Aliquam vitae arcu ac ante luctus ultricies. Nullam elementum risus tortor.

Sed venenatis aliquet libero eget ultricies. Donec luctus et orci non pulvinar. Donec vehicula, justo ut efficitur tristique, neque ante convallis lorem, id vehicula erat enim a dui. Quisque pharetra urna non imperdiet rhoncus. Vestibulum quis faucibus velit.

April 15, 2015
12:00 p.m. – 1:30 p.m.
20 S. Wacker
CME Group Headquarters
Chicago, IL
Map

*Seating is limited. Registrations will be taken on a first come first served basis.