Could CME Group's FX Tape+ be the Key to a More Transparent FX Market?

CME Group CME recently announced that it is gearing up to launch CME FX Tape+ later this year. The leading derivatives marketplace’s primary objective with FX Tape+ is to provide centralized reference prices and a comprehensive view of FX market liquidity, thereby enhancing price discovery and transparency across the fragmented foreign exchange landscape.

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The new service aims to provide an accessible, unbiased view of the FX market by leveraging data from over 1,400 institutions and 100,000 active participants. Unlike other reference sources that rely on indicative or curated pricing, it will draw exclusively from transparent central limit order book venues, such as FX futures, EBS Market, FX Spot+ and FX Link, to deliver a consolidated picture of real market liquidity and pricing.

At launch, the service will cover 10 major currencies and offer a composite “true” spot mid-price, derived from a blend of liquidity, executed trades and mid-rates across multiple trading venues. The data will be updated every 250 milliseconds and shared in real time through a WebSocket API.

This initiative strengthens CME’s role as a trusted financial infrastructure provider while unlocking new revenue streams through the sale of high-quality market data and driving growth in trading volume. It aligns with growing regulatory demands for transparency, positioning CME ahead of potential industry mandates. This move boosts platform synergy and encourages wider market participation. It can also support CME’s cross-product monetization efforts.

CME’s YTD Price Performance

In the year-to-date period, shares of CME have gained 19.2% outperforming the industry average of 13.4%.

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Zacks Rank & Key Picks

CME currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader finance space are Acadian Asset Management Inc. AAMI, Pagaya Technologies Ltd. PGY and Axos Financial AX. While Acadian Asset Management and Pagaya Technologies sport a Zacks Rank #1 (Strong Buy), Axos Financial carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Acadian Asset Management’s current-year earnings is pegged at $3.18 per share, implying 15.2% year-over-year growth. AAMI beat earnings estimates in three of the past four quarters and met once, with the average surprise being 11.1%. The consensus estimate for AAMI’s current-year revenues is pegged at $560.8 million, implying 10.9% year-over-year growth.

The Zacks Consensus Estimate for Pagaya’s current-year earnings is pegged at $2.45 per share, implying 195.2% year-over-year growth. The estimate has witnessed two upward estimate revisions in the past 60 days. The consensus estimate for PGY’s current-year revenues is pegged at $1.2 billion, implying 19.9% year-over-year growth.

AX’s earnings surpassed estimates in each of the last four quarters, the average beat being 4.5%. The Zacks Consensus Estimate for AX’s 2025 earnings is pegged at $7.39 per share. It has witnessed one upward revision in the past month against no movement in the opposite direction. The consensus estimate for Axos Financial's current-year revenues is pegged at $1.3 billion, implying 5.3% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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