LONDON, May 4, 2006 (AFP) – British information group Reuters and the Chicago Mercantile Exchange (CME) unveiled on Thursday joint-venture plans for a new global foreign exchange (FX) market place. Reuters and CME, the world’s largest financial exchange, plan to create FXMarketSpace, described by the pair as the worlds first centrally-cleared, global foreign exchange market place.
It would be set up through a new 50/50 joint-venture company.
Reuters and CME would both contribute capital of up to 45 million dollars (36 million euros) to fund the venture until it was expected to become profitable in 2008.
“We see exciting prospects for growth in the global FX markets as the range of participating financial institutions broadens,” Reuters chief executive Tom Glocer said in a joint statement.
“We are pleased to be working with CME as our preferred partner to extend our FX business and help shape the evolution of the FX markets. We are committed to providing our customers with a choice of trading services for their foreign currency activities.”
Reuters and CME claimed that FX was the world’s most actively traded asset class, with about two trillion dollars traded each day.