Cecabank joins the xRolling FX Futures market as the first market maker for institutional clients

27 September 2021

  • Cecabank's entry into this market as a price provider guarantees clients optimum liquidity at all times and in all currency pairs, benefiting from the structure and expertise of one of the most powerful foreign exchange desks in the local market

Madrid – 27 September 2021

The MEFF futures market brings Cecabank on board as the first market maker for institutional clients in the financial sector, specifically in the xRolling FX contract. This is a perpetual futures contract on 17 currency pairs, traded in MEFF and settled through BME Clearing. This product was initially intended for the retail market. With the incorporation of Cecabank as a pricing provider, trading is extended to institutional clients, large and medium-sized asset managers and insurance companies.

The fact that it is perpetual means that, at the close of the market, open positions are automatically rolled over on a daily basis (Roll-Over), which avoids incurring market risk, operational risk and the cost of Roll-Over on a specified date.

Another advantage of this futures contract over traditional products such as Outright OTC is that, because it is listed in a regulated market and cleared and settled in a clearing house, it allows clients to comply with many of the regulatory requirements, thereby reducing capital consumption by eliminating counterparty risk.

Moreover, on the one hand, it is more flexible than conventional futures contracts traded in Chicago, in that, because it is perpetual, it eliminates the risks and reduces the costs associated with Roll-Over at a specified date. On the other hand, it facilitates settlement and collateralisation processes by being executed in euro.

Cecabank has a Trading Room that offers all kinds of products to its customers and covers most of the world's financial markets. Thus, Cecabank makes it possible to operate on the (public and private) bond markets, on the foreign exchange market and on the equity market, among others.