Bats Hotspot, the global forex exchange market of BATS Global Markets (BATS:BATS), said it is planning to offer trading of forex outright deliverable forwards contracts. The launch is planned for this autumn.
“We are excited to expand the Hotspot product offering to include forwards contracts, meeting what we see as a real client need for additional sources of anonymous liquidity in these products,” said Bats Global Markets CEO Chris Concannon.
The products will be launched on the existing Hotspot credit infrastructure and will utilize its matching engine. The new market will operate as an anonymous order book. The company promises further details later this summer.
Forward exchange contracts are used by market participants to buy or sell an asset on a future date at a price set on the day the agreement between the parties is concluded, unlike the spot contracts, which use the price on the date of the transaction. Normally, the regular periods for outright contracts are for months, up to a year, but there are possible terms of up to five years for major currencies. The term of an outright deal is measured starting with the spot value date.
BATS Global Markets is a US-based operator of exchanges and services for financial market. It is headquartered in Kansas City and has offices in New York, London, Chicago and Singapore. The company owns four US equities exchanges – BZX, BYX, EDGX, EDGA, one European equities exchange – Bats Europe, one US options exchange – Bats Options, and one institutional forex trading platform – HotSpot FX, which it acquired in January 2015.
Bats became public this April with an IPO valued at $19 per share. As of June 7 the company had a market cap of $2.58 billion.