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End of forex brokers CME & Reuters join forces
- Thread starter RedDuke
- Start date
There's a recent article @ http://nondealingdesk.blogspot.com/
Spoke with a representative from the CME. The current business model does not include retail.
Quote from MiamiHurricanes:
Spoke with a representative from the CME. The current business model does not include retail.
Right... retail traders will not have direct access to it just like they don't have direct access to Globex. But retail brokers will have access to it just like they do to Globex which in turn means you, the retail Joe, will have access it it via your broker.
It's a virtual exchange. Not simply a platform like Lava, Currenex, or EBS. You get those front ends through a bank or prime broker in which you establish a credit relationship with. Since the CME is the counterparty and central clearing agent, they are not just matching orders.
The other hint that it will be available to retail traders through their brokerage is the fact that it will be accessible via iLink. Any brokerage currently trading on Globex 2 (which is iLink2.0/ fix 4.xx) will in all probability offer Forex trading through FXmarket space. And it will have the same 5 level DOM as Globex 2 currently has. Plus it's transaction fee based just like Globex.
The only question is, what will the brokerages set the margin rate to? 50:1? 100:1? Totally up to their discretion.
One other thing, in all probability it will spell the end of the bucketshop model. I foresee spreads as tight a 1 pip consistently on FXMarketspace since not only because it will be transaction fee based as oppossed to spread based, but also because more players will be able to make the bid/offer. Not just the top 10 banks. Hedge fund players, banks, traders, etc. will be posting bids and offers. Be nice if they will allow 1/2 pip increments.
Thanks for the clarification, but I thought that when I was speaking with their staff it was understood that when I am speaking of retail, I mean via STP and a broker that would charge commission.
I'm confused.
If I sign up to a retail broker today, when this whole deal right here affect my trading at the retail broker in any way, and if so, in what ways are most possible?
Also, can we have a straight up answer, will someone like me, who just wants to make a few trades, but not day-trade Forex be able to access this. All this talk about Prime Brokerage and stuff is confusing me, and I'm not a millionaire (yet), so is there anyone with a clear answer as to the possiblities as how this is going to work.
Just some simple probabilities as to how this all might work would be fine.
If I sign up to a retail broker today, when this whole deal right here affect my trading at the retail broker in any way, and if so, in what ways are most possible?
Also, can we have a straight up answer, will someone like me, who just wants to make a few trades, but not day-trade Forex be able to access this. All this talk about Prime Brokerage and stuff is confusing me, and I'm not a millionaire (yet), so is there anyone with a clear answer as to the possiblities as how this is going to work.
Just some simple probabilities as to how this all might work would be fine.