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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]
| Industry | Financial services |
|---|---|
| Founded | 1990 |
| Successor | CME Group |
| Services | electronic trading platform market-making banks |
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: