Exchange launches with SOFR futures
NEW
YORK, Sept. 24, 2024 /PRNewswire/ -- BGC Group,
Inc. (Nasdaq: BGC) and ten of the world's leading investment banks
and market-making firms today announced the successful launch of
the highly anticipated FMX Futures Exchange. The exchange is now
open for trading SOFR futures, the largest notional futures
contract in the world, and will add U.S. treasury futures in
the first quarter of 2025.
"We are excited to introduce real competition to the U.S. SOFR
futures market and provide clients with much-needed innovation,
superior pricing, and dramatically improved capital
efficiency," said Howard W.
Lutnick, Chairman and CEO of BGC Group and Chairman of FMX
Holdings, LLC. "This is the first U.S. interest rate futures
exchange to launch with a fully operational, globally connected,
state-of-the-art trading system, along with enormous capital
savings driven by the LCH's cross-margin capabilities. Together
with our strategic partners, FMX is well-positioned to capitalize
on this tremendous opportunity."
The FMX Futures Exchange expects to provide clients with
significant capital savings through its clearing partnership with
LCH Limited ("LCH"), a fully approved CFTC Derivatives Clearing
Organization and one of the largest clearers of interest rate swaps
in the world. LCH has $225 billion of
interest rate swap collateral securing its interest rate swaps,
against which LCH members expect to cross-margin eligible U.S.
interest rate futures traded on FMX Futures
Exchange.1
"We congratulate BGC Group on the successful launch of the
highly innovative FMX Futures Exchange," said Daniel Maguire, Group Head, LSEG Markets and
CEO, LCH Group. "Our partnership highlights LCH's commitment to
delivering choice to market participants. It will enable members
and clients to benefit from our extended clearing capabilities and
bring increased resiliency, margin efficiencies and liquidity to
the USD rates derivatives market."
The FMX Futures Exchange is a part of FMX Holdings, LLC, which
includes the world's fastest growing cash U.S. treasuries
marketplace and rapidly growing spot Foreign Exchange platform.
Bank of America, Barclays, Citadel Securities, Citi, Goldman Sachs,
J.P. Morgan, Jump Trading Group, Morgan Stanley, Tower Research
Capital, and Wells Fargo are the equity partners of FMX Holdings,
LLC.
About BGC Group, Inc.
BGC Group, Inc. (Nasdaq: BGC) is
a leading global marketplace, data, and financial technology
services company for a broad range of products, including fixed
income, foreign exchange, energy, commodities, shipping, equities,
and now includes the FMX Futures Exchange. BGC's clients are many
of the world's largest banks, broker-dealers, investment banks,
trading firms, hedge funds, governments, corporations, and
investment firms.
BGC and leading global investment banks and market making firms
have partnered to create FMX Holdings, LLC, part of the BGC Group
of companies, which includes a U.S. interest rate futures exchange,
spot foreign exchange platform and the world's fastest growing U.S.
cash treasuries platform.
For more information about BGC, please visit www.bgcg.com.
Discussion of Forward-Looking Statements about
BGC
Statements in this document regarding BGC
that are not historical facts are "forward-looking
statements" that involve risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements. These include statements about the
Company's business, results, financial position, liquidity and
outlook, which may constitute forward-looking statements and are
subject to the risk that the actual impact may differ, possibly
materially, from what is currently expected. Except as required by
law, BGC undertakes no obligation to update any
forward-looking statements. For a discussion of additional risks
and uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see BGC's
Securities and Exchange Commission ("SEC") filings,
including, but not limited to, the risk factors and Special Note on
Forward-Looking Information set forth in these filings and any
updates to such risk factors and Special Note on Forward-Looking
Information contained in subsequent reports on Form 10-K, Form 10-Q
or Form 8-K.
1 Source: Clarus Financial Technology. Cleared
interest rate swap collateral data as of 3/29/24.
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SOURCE BGC Group, Inc.