Reuters – A Reuters Group Plc and Chicago Mercantile Exchange deal to create the first centrally cleared foreign exchange marketplace aims to tap growing institutional and hedge fund activity, thetwo companies said.
The companies said on Thursday they will pool their expertise in data dissemination, distribution, trade matching and central counterparty clearing services for the 50-50 venture, FXMarketSpace.
Reuters shares closed up 2.2 percent at 399.06 pence on the London Stock Exchange, and edged up 99 cents, or 2.29 percent, to close at $44.24 on the New York Stock Exchange. CME ended at $477.15, up $26.09 or 5.8 percent, on the NYSE.
FXMarketSpace will provide trading anonymity and price transparency, use CME’s clearing firms and trade matching services, and be distributed over Reuters desktop terminals.
“We are both making small investments in what is potentially a very big opportunity. This has the potential for very big returns,” said CME Chairman Terry Duffy.
