12.08.2015, 14:09
GMEX IRS Constant Maturity Futures successfully launched
OREANDA-NEWS. Eurex and GMEX are pleased to announce that the first trades in GMEX’s Euro-denominated IRS Constant Maturity Future (IRS CMF) have been successfully executed, cleared and settled. This innovative product has been available for the electronic arranging of transactions on GMEX’s platform with trade confirmation and clearing on Eurex since 7 August 2015.
At launch, a number of trading and clearing members have been able to trade and clear including Bank of America Merrill Lynch, Société Générale and R.J. O’Brien. GMEX and Eurex are continuing to admit and connect further market participants to trade the IRS CMF contracts, including large sell-side banks, buy-side firms, futures trading houses and derivatives brokers. Additionally, key software and market data vendors have been offering their services from the start including Trading Technologies, Fidessa and Bloomberg.
The IRS CMF contract provides a much lower margin alternative to plain vanilla OTC IRS for hedging given the increased capital requirements relating to EU Commission’s mandatory central clearing and front loading rules for IRS. The new regulation will likely come into force in April 2016 with buy-side firms having six months to comply.
“We are very pleased with the observed level of market interest. Launching an innovative product is very much a process, not an event, with a range of buy and sell-side participants looking to go live over the coming months driven by the need for capital efficiencies as a result of regulatory change,” commented Hirander Misra, CEO and Co-Founder of GMEX Group.
“We are delighted that the GMEX product suite is now available for trading and clearing, which is the culmination of a very positive collaboration between various areas of the futures market ecosystem. Now we need to maintain the momentum with GMEX and market participants to build the liquidity that holders of interest rate exposure will need to address the requirements of the new regulatory environment,” added Brendan Bradley, member of the Eurex Executive Board.
About Eurex Group
Eurex Group turns ideas into opportunities – in trading and clearing, technology and risk management. Each of our six businesses is a leader and innovator in their own area. Eurex Exchange was the world’s first electronic cross-border exchange, now offering around 2,000 products across a growing range of asset classes. Eurex Clearing is one of the leading central counterparties globally and a pioneer in risk management and post-trade technology, offering clearing services for derivatives, equities, bonds and secured funding & financing transactions.
In the U.S., the International Securities Exchange (ISE) transformed the options industry as the first all-electronic exchange and is now one of the world’s largest equity options exchanges.
The European Energy Exchange (EEX) is Europe’s largest market for trading in energy and related commodities.
Eurex Repo is the leading market for secured funding & financing in Europe. And Eurex Bonds is one of the most liquid markets for European bonds on an electronic trading platform.
Partnering with other industry leaders, investors and regulators around the world, our people are shaping an environment where all participants can get more from the market.
Eurex Group is owned by Deutsche Börse AG (Xetra: DB1).
About GMEX
Global Markets Exchange Group Limited (GMEX) is a wholly-owned subsidiary of GMEX Group. GMEX is authorised and regulated by the UK Financial Conduct Authority (FCA).
About GMEX Group
Global Markets Exchange Group International LLP (GMEX Group) is a group of companies that offer sustainable and innovative solutions for the new era of global financial markets, encompassing:
· Operation of a venue for the arrangement of a Constant Maturity Future for Interest Rate Swaps
· Development of related new tradable market and product indices
· Creation and operation of low cost electronic exchanges/platforms in equities, debt, FX, derivatives and commodities in both developing and, in a targeted way, developed markets
· Interconnectivity of exchanges to each other creating a global network of liquidity
· Business development to enhance liquidity in partner exchange products
· Consultancy on exchange strategy, product development, clearing and regulation
· Provision of exchange, clearing house and depository platform technology
GMEX Group stakeholders include Deutsche Börse AG, Société Générale Corporate & Investment Banking and Forum Trading Solutions Limited through its investment vehicle.
At launch, a number of trading and clearing members have been able to trade and clear including Bank of America Merrill Lynch, Société Générale and R.J. O’Brien. GMEX and Eurex are continuing to admit and connect further market participants to trade the IRS CMF contracts, including large sell-side banks, buy-side firms, futures trading houses and derivatives brokers. Additionally, key software and market data vendors have been offering their services from the start including Trading Technologies, Fidessa and Bloomberg.
The IRS CMF contract provides a much lower margin alternative to plain vanilla OTC IRS for hedging given the increased capital requirements relating to EU Commission’s mandatory central clearing and front loading rules for IRS. The new regulation will likely come into force in April 2016 with buy-side firms having six months to comply.
“We are very pleased with the observed level of market interest. Launching an innovative product is very much a process, not an event, with a range of buy and sell-side participants looking to go live over the coming months driven by the need for capital efficiencies as a result of regulatory change,” commented Hirander Misra, CEO and Co-Founder of GMEX Group.
“We are delighted that the GMEX product suite is now available for trading and clearing, which is the culmination of a very positive collaboration between various areas of the futures market ecosystem. Now we need to maintain the momentum with GMEX and market participants to build the liquidity that holders of interest rate exposure will need to address the requirements of the new regulatory environment,” added Brendan Bradley, member of the Eurex Executive Board.
About Eurex Group
Eurex Group turns ideas into opportunities – in trading and clearing, technology and risk management. Each of our six businesses is a leader and innovator in their own area. Eurex Exchange was the world’s first electronic cross-border exchange, now offering around 2,000 products across a growing range of asset classes. Eurex Clearing is one of the leading central counterparties globally and a pioneer in risk management and post-trade technology, offering clearing services for derivatives, equities, bonds and secured funding & financing transactions.
In the U.S., the International Securities Exchange (ISE) transformed the options industry as the first all-electronic exchange and is now one of the world’s largest equity options exchanges.
The European Energy Exchange (EEX) is Europe’s largest market for trading in energy and related commodities.
Eurex Repo is the leading market for secured funding & financing in Europe. And Eurex Bonds is one of the most liquid markets for European bonds on an electronic trading platform.
Partnering with other industry leaders, investors and regulators around the world, our people are shaping an environment where all participants can get more from the market.
Eurex Group is owned by Deutsche Börse AG (Xetra: DB1).
About GMEX
Global Markets Exchange Group Limited (GMEX) is a wholly-owned subsidiary of GMEX Group. GMEX is authorised and regulated by the UK Financial Conduct Authority (FCA).
About GMEX Group
Global Markets Exchange Group International LLP (GMEX Group) is a group of companies that offer sustainable and innovative solutions for the new era of global financial markets, encompassing:
· Operation of a venue for the arrangement of a Constant Maturity Future for Interest Rate Swaps
· Development of related new tradable market and product indices
· Creation and operation of low cost electronic exchanges/platforms in equities, debt, FX, derivatives and commodities in both developing and, in a targeted way, developed markets
· Interconnectivity of exchanges to each other creating a global network of liquidity
· Business development to enhance liquidity in partner exchange products
· Consultancy on exchange strategy, product development, clearing and regulation
· Provision of exchange, clearing house and depository platform technology
GMEX Group stakeholders include Deutsche Börse AG, Société Générale Corporate & Investment Banking and Forum Trading Solutions Limited through its investment vehicle.
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