CME Consolidates FX Businesses, Anoints Paul Houston to Lead the Charge

CME Consolidates FX Businesses, Anoints Paul Houston to Lead the Charge

Time Stamp: August 16, 2023 12:03 PM
Source Node: 2826108

CME Group,
the world’s biggest derivatives marketplace, has conducted a major realignment
of its business structure. On Wednesday, the company announced the unification
of its forex businesses under the leadership of Paul Houston, who has been the
company’s Global Head of FX Products since April 2016.

CME
explained that the restructuring means that its forex futures, options, cash
and over-the-counter forex units will now operate under a single entity. The marketplace operator expects the “more integrated FX business model” to significantly
expand trading opportunities for its clients. It also believes that the move
will boost efficiency and improve the introduction of new products in the
evolving FX marketplace.

“We have
been working to create tighter alignment among all of our FX businesses since
CME Group purchased Electronic Broking Services (EBS) through its acquisition of NEX
in 2018,” said Tim
McCourt, CME Group’s Senior Managing Director and Head of Financial & OTC
Products. “This new structure is the last step in that process and one that, we
believe, will benefit our FX clients globally.”

Additionally, the
Chicago-based public company noted that Houston, who previously worked for Deutsche
Bank, Credit Suisse and the Royal Bank of Scotland, will continue acting in his current role. However,
the senior executive will also lead the combined teams “to
further improve client service, increase efficiencies and enhance product
development across the entire FX marketplace.”

Houston has
also been handed the responsibility of overseeing the cash markets of EBS, CME’s FX trading platform that
provides OTC forex liquidity and facilitates international trade and risk
management. EBS, which is one of the largest and most liquid marketplaces
in the world, was previously headed by Jeff Ward. However, the top executive is expected to depart the company in September after nearly five years of service.

“Paul is a
proven leader who has played a key role in expanding our FX futures and options
business, which saw average daily volume increase by 24% to 985,000 contracts
last year,” McCourt stated. “[Paul Houston’s] experience and comprehensive
knowledge of the broad FX market will benefit our entire FX business and create
enhanced development opportunities for the combined team.”

Record
Performance

Meanwhile,
the merger of CME’s FX businesses trails the derivative marketplace operator’s recent
milestones. In March, the single-day volume of FX futures and options contracts
traded on the Globex electronic trading platform hit a new record of
3.15 million contracts on the 8th of the month. The volume was worth $296
billion in USD notional, Finance
Magnates reported.

Moreover,
CME beat analysts’ estimates in its full-year financial results last year. The
group’s total revenue rose by 6% to $5
billion, with
operating income jumping by a much higher 15% to reach $3 billion.

eToro partners with Reflexivity; BaFin exposes Fortex clone; read today’s news nuggets.

CME Group,
the world’s biggest derivatives marketplace, has conducted a major realignment
of its business structure. On Wednesday, the company announced the unification
of its forex businesses under the leadership of Paul Houston, who has been the
company’s Global Head of FX Products since April 2016.

CME
explained that the restructuring means that its forex futures, options, cash
and over-the-counter forex units will now operate under a single entity. The marketplace operator expects the “more integrated FX business model” to significantly
expand trading opportunities for its clients. It also believes that the move
will boost efficiency and improve the introduction of new products in the
evolving FX marketplace.

“We have
been working to create tighter alignment among all of our FX businesses since
CME Group purchased Electronic Broking Services (EBS) through its acquisition of NEX
in 2018,” said Tim
McCourt, CME Group’s Senior Managing Director and Head of Financial & OTC
Products. “This new structure is the last step in that process and one that, we
believe, will benefit our FX clients globally.”

Additionally, the
Chicago-based public company noted that Houston, who previously worked for Deutsche
Bank, Credit Suisse and the Royal Bank of Scotland, will continue acting in his current role. However,
the senior executive will also lead the combined teams “to
further improve client service, increase efficiencies and enhance product
development across the entire FX marketplace.”

Houston has
also been handed the responsibility of overseeing the cash markets of EBS, CME’s FX trading platform that
provides OTC forex liquidity and facilitates international trade and risk
management. EBS, which is one of the largest and most liquid marketplaces
in the world, was previously headed by Jeff Ward. However, the top executive is expected to depart the company in September after nearly five years of service.

“Paul is a
proven leader who has played a key role in expanding our FX futures and options
business, which saw average daily volume increase by 24% to 985,000 contracts
last year,” McCourt stated. “[Paul Houston’s] experience and comprehensive
knowledge of the broad FX market will benefit our entire FX business and create
enhanced development opportunities for the combined team.”

Record
Performance

Meanwhile,
the merger of CME’s FX businesses trails the derivative marketplace operator’s recent
milestones. In March, the single-day volume of FX futures and options contracts
traded on the Globex electronic trading platform hit a new record of
3.15 million contracts on the 8th of the month. The volume was worth $296
billion in USD notional, Finance
Magnates reported.

Moreover,
CME beat analysts’ estimates in its full-year financial results last year. The
group’s total revenue rose by 6% to $5
billion, with
operating income jumping by a much higher 15% to reach $3 billion.

eToro partners with Reflexivity; BaFin exposes Fortex clone; read today’s news nuggets.

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