CME set to dump FXMarketSpace - report

CME set to dump FXMarketSpace - report

CME Group is planning to withdraw from FXMarketSpace, the centrally-cleared foreign exchange marketplace it established with Thomson Reuters, according to a press report.

The partners launched FXMarketSpace as a 50/50 joint venture in March 2007, with Reuters providing trading access, trade notification and market data distribution and CME offering clearing and trade matching services.

But in a report citing "well-placed sources", finance publication Euromoney says CME Group decided to end its involvement in the venture at a board meeting on Wednesday.

CME Group, Thomson Reuters and FXMarketspace have all declined to comment on the speculation.

At launch it was expected that FXMarketSpace needed to capture two per cent of the $2 trillion over-the-counter foreign exchange market to achieve break-even. But the venture failed to attract the interest the two parties had hoped for and volumes stopped being reported late last year.

In March Reuters cited FXMarketSpace as the main driver for the £6 million share of losses it incurred from joint ventures and associates during the last year.

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