CQG is partnering with MIAX to launch the Onyx exchange, enhancing its technology offerings for retail and institutional clients. The company is expanding its product suite to include multi-asset trading, AI-driven algorithms, and post-trade risk management tools, while also focusing on growth in South America.
CQG, a leading provider of trading technology, is excited to announce its collaboration with the Miami Exchange following their acquisition of MJX and rebranding to MYX Futures. This partnership marks a significant step in CQG's strategy to enhance its offerings in the futures trading space.
The Miami Exchange approached CQG early in their transition, recognizing that CQG accounts for approximately 25% of the volume on their exchange. CQG has been instrumental in consulting on the development of MIAX's technology, including their matching engine and APIs. As MIAX prepares to launch the Onyx exchange in 2025, CQG will be there from day one as a technology and API provider.
MIAX has announced plans to introduce new futures index products in partnership with Bloomberg, which is expected to excite CQG's retail customer base. The demand for index products has been growing, and CQG is eager to see how MIAX will leverage the Onyx platform to meet this demand.
CQG has been focusing on expanding its multi-asset trading capabilities. Traditionally known for futures and options on futures, CQG is now offering a broader range of products, including fixed income, FX products, OTC products, digital assets, equities, and equity options. This expansion is aimed at catering to retail clients who are looking to diversify their trading strategies.
To support this expansion, CQG is introducing a suite of tools designed to help traders manage risks associated with futures options. The new product, termed "options and futures post-trade risk," will allow users to analyze their options portfolio under various market conditions, quantifying risks such as market volatility, interest rates, and dividends.
CQG has recognized a growing opportunity in the institutional trading space, particularly in light of new regulations emerging from Europe. The company has implemented its trading screens and connectivity solutions in several tier-one banks, transitioning from a primarily retail-focused provider to a more balanced approach that includes institutional clients.
CQG aims to support larger institutions by providing high-grade execution technology while partnering with firms that specialize in order management solutions. This strategy allows CQG to focus on its strengths in frontend technology, exchange connectivity, and market data, while leveraging partnerships to fulfill the broader needs of institutional clients.
CQG is also making strides in artificial intelligence and machine learning. The company has developed algorithms that are currently in production for E-mini and E-micro futures, achieving an accuracy rate of 70-80% in predicting market movements. These algorithms are designed to enhance trading efficiency and execution quality.
The introduction of Smart Market technology represents a significant advancement in CQG's offerings. This technology encompasses two new machine learning-based algorithms: Pay Up AI, which predicts market movements for smaller orders, and Arrival AI, which optimizes execution prices. By utilizing these algorithms, traders can reduce costs associated with market orders and improve their overall trading strategy.
CQG is also making inroads into the South American market, particularly in Brazil. The company has recently hired consultants from São Paulo to help establish a local presence and develop technology for OTC bus tests. This initiative aims to connect retail clients in Brazil to B3 for futures and equities, enhancing CQG's global footprint.
CQG's partnership with MIAX and its commitment to expanding its technology offerings reflect a strategic vision aimed at meeting the evolving needs of both retail and institutional traders. With a focus on multi-asset trading, AI innovations, and a growing presence in South America, CQG is poised to play a significant role in the future of trading technology.
