The London Stock Exchange Group's (LSEG.L) FTSE Russell unit has dropped plans to add Chicago Board Options Exchange owner Cboe (CBOE.Z) to the group of currency data providers used to calculate its WMR FX benchmarks after pushback from users.
FTSE Russell proposed adding Cboe's data for ten top currencies almost a year ago, but it said on Wednesday that user consultations showed it "could not be considered sufficiently equivalent to the current WMR Spot FX Benchmark primary data sources".
A spokesperson for Cboe said it was disappointed by the decision and that it looked forward to engaging with both FTSE Russell and the wider FX industry as it seeks to enhance the governance around the WMR Benchmarks.
FTSE Russell's statement added that differences around liquidity, trading parameters and availability suggested there would be "significant practical challenges and complexities" in incorporating the Cboe data.
It may have also "diminished the utility of the benchmarks by influencing market behaviors" and "reduced the representativeness of the WMR Spot FX Benchmarks by allowing curated transactions that are not sufficiently transparent to market participants".
FTSE Russell said it was also starting a consultation on removing State Street's Currenex data from its euro, yen and Swiss franc WMR FX benchmarks.
The consultation will focus on "operational considerations" of the proposed removal, such as the appropriate notice period for market stakeholders.
A confirmation, including the effective date of the change, will be provided "as expediently as possible", it added, saying that Currenex data would continue to be used until then.
Currenex did not immediately provide a response to FTSE Russell's announcement.
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