 | This article needs additional citations for verification .(April 2008) |
| Industry | Financial services |
|---|---|
| Founded | 1990 |
| Successor | CME Group |
| Services | electronic trading platform market-making banks |
Electronic Broking Services (EBS) is a wholesale electronic trading platform used to trade on the foreign exchange market (FX) with market-making banks. It was originally created as a partnership by large banks and then became part of CME Group. [1]
EBS was created by a partnership of large foreign exchange (FX) market making banks in 1990 to challenge Reuters' threatened monopoly in interbank spot foreign exchange and provide effective competition.[ citation needed ] By 2007, approximately US$164 billion in spot foreign exchange transactions were traded every day over EBS's central limit order book, EBS Market.[ citation needed ]
EBS's closest competitor is London Stock Exchange Group's FX Matching service (LSEG Matching). The decision by an FX trader whether to use EBS or LSEG Matching is driven largely by the availability of a required currency pair. In practice, EBS is the primary trading venue for EUR/USD, USD/JPY, EUR/JPY, USD/CHF, EUR/CHF and USD/CNH, and LSEG Matching is the primary trading venue for commonwealth (AUD/USD, NZD/USD, USD/CAD) and emerging market currency pairs.[ citation needed ]
EBS initiated e-trading in spot precious metals, spanning spot gold, silver, platinum and palladium, and remains the leading electronic broker in spot gold and silver through the Loco London Market.[ citation needed ]
They were the first organisation to facilitate orderly black box or algorithmic trading in spot FX, through an application programming interface (API). By 2007 this accounted for 60% of all EBS flow.[ citation needed ]
In addition to spot FX and Precious Metals, EBS has expanded trading products through its venues to include NDFs, forwards and FX options. It has also increased the range of trading style to include RFQ and streaming in disclosed and non-disclosed environments.[ citation needed ]
EBS was acquired by ICAP, the world's largest inter-dealer broker, in June 2006. [2]
In 2014, EBS merged with BrokerTec—a service provider in the fixed income markets—to form EBS BrokerTec. BrokerTec offers trading technology for many US and European fixed income products including US Treasuries, European Government Bonds and European Repo. [3] [4]
In 2017, EBS BrokerTec was renamed to NEX Markets and the name EBS BrokerTec ceased to exist. The names of the trading platforms, EBS and BrokerTec, remained. [5]
In 2018, NEX Markets was acquired by CME Group. [6]
Products of the company include:
ISO 4217 is a standard published by the International Organization for Standardization (ISO) that defines alpha codes and numeric codes for the representation of currencies and provides information about the relationships between individual currencies and their minor units. This data is published in three tables:
The foreign exchange market is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the credit market.
A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called the spot exchange rate. As of 2010, the average daily turnover of global FX spot transactions reached nearly US$1.5 trillion, counting 37.4% of all foreign exchange transactions. FX spot transactions increased by 38% to US$2.0 trillion from April 2010 to April 2013.
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Michael Alan Spencer, Baron Spencer of Alresford, sometimes known as "Spens", is a British billionaire businessman and philanthropist. He is the founder of NEX Group, a UK-based business focused on electronic markets and post-trade business which was acquired by CME Group in November 2018. NEX Group was formerly known as ICAP, until the sale of its voice-broking business to Tullett Prebon in December 2016.
CME Group Inc. is a financial services company. Headquartered in Chicago, the company operates financial derivatives exchanges including the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, and The Commodity Exchange. The company also owns 27% of S&P Dow Jones Indices. It is the world's largest operator of financial derivatives exchanges. Its exchanges are platforms for trading in agricultural products, currencies, energy, interest rates, metals, futures contracts, options, stock indexes, and cryptocurrencies futures.
NEX Group plc, formerly known as ICAP plc, is a UK-based business focused on electronic financial markets and post trade business for other financial institutions rather than private individuals. They are known as an inter-broker dealer. The company operates BrokerTec and EBS, respectively among the largest treasuries and foreign exchange markets in the world. NEX was listed on the London Stock Exchange until it was acquired by CME Group in November 2018.
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