How resilient are decentralised markets? Insights from a CME outage into FX market functioning
Summary
On 28 November 2025, the failure of a single Chicago-based data centre disrupted several global financial markets. The foreign exchange (FX) market was among those affected as its most important trading venue for futures contracts as well as a key primary venue became unavailable. The outage provided a natural experiment, shedding light on the impact of the trading halt on market functioning and the resilience of the decentralised FX market. We find that trading on secondary venues and with banks continued, demonstrating how decentralisation can enhance resilience. However, transaction costs increased considerably, mainly because FX futures prices became unavailable. This indicates that price signals from transparent venues remain essential for price discovery in the FX market.
- Issue:
- 02
- Pages:
- 8
- Keywords:
- Market structure, Foreign exchange, Decentralised markets, Price discovery, Market outage
- Year:
- 2026