CME looks to local banks for FX liquidity in emerging markets

Chicago-based exchange targets China, India and LatAm growth

Craig LeVeille, CME Group

Over-the-counter markets and exchanges do not always have the easiest relationships. In FX, CME Group has often been viewed as a threat to the business of traditional dealing banks, but the market's transformation from a predominantly two-tier structure to a blurring of the lines between the buy and sell side has favoured the exchange, which serves a wide range of participants.

While banks are still accountable for more than one-third of all FX turnover in external markets, more than half is