BGC Group said last week that on September 23, 2024, the company and ten of the world’s top investment banks will officially launch the FMX Futures Exchange.
BGC Group and Leading Banks to Launch FMX Futures Exchange
The new platform is designed for trading U.S. interest rate futures. The exchange, which the company said opens for trading at 9:00 p.m. ET, is expected to offer solutions in the interest rate futures market, the most widely traded futures contracts globally.
The company explains that initially, the FMX Futures Exchange will offer Secured Overnight Financing Rate (SOFR) futures, with U.S. Treasury futures set to launch in early 2025.
“FMX expects to provide clients with significant capital savings through its clearing partnership with LCH Limited,” said BGC. LCH is one of the largest clearers of interest rate swaps.
The collaboration aims to offer cross-margining benefits by leveraging $225 billion in collateral against interest rate swaps, potentially providing traders with significant capital efficiency.
FMX is part of FMX Holdings LLC, which also includes a rapidly growing spot Foreign Exchange platform and a fast-expanding U.S. cash treasuries marketplace.
Equity owners of FMX Holdings include Bank of America, Barclays, Citadel Securities, Citi, Goldman Sachs, J.P. Morgan, Jump Trading Group, Morgan Stanley, Tower Research Capital, and Wells Fargo.
BGC Group, a leading financial technology and marketplace services firm, aims to enhance its product offerings through FMX. They believe the new exchange will further strengthen its standing in the financial markets, providing traders with a platform for futures and treasuries trading.
