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.

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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.

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