New York, Sept 14 – BGC Group has announced the official launch date for its new futures exchange, FMX Futures Exchange, which is scheduled to commence operations on September 23.
The FMX Futures Exchange is poised to enter a competitive market dominated by major players such as CME Group, ICE, and Cboe Global Markets. The new exchange will initially offer trading exclusively in SOFR (Secured Overnight Financing Rate) futures, with plans to introduce US Treasury futures in the first quarter of 2025.
The exchange has secured backing from a prominent consortium of financial institutions, including Bank of America, Barclays, Citadel Securities, Citi, Goldman Sachs, JP Morgan, Jump Trading Group, Morgan Stanley, Tower Research Capital, and Wells Fargo. Additionally, FMX has established a clearing partnership with LCH, providing a seamless integration of clearing and trading services. The Commodity Futures Trading Commission (CFTC) granted approval for FMX to operate as an exchange for US Treasury and SOFR futures in January of this year.
“LCH has $225 billion in interest rate swap collateral securing its interest rate swaps. This collateral will enable LCH members to cross-margin eligible US interest rate futures traded on FMX Futures Exchange,” BGC Group stated in its announcement.
FMX Futures Exchange builds on BGC Group’s existing platform, Fenics Markets Xchange (FMX), which was launched in 2021. The original FMX platform was designed to facilitate electronic trading of US rates cash and futures, combining BGC’s low-latency electronic trading system for US Treasuries, Fenics UST, with FMX US futures trading capabilities on a single platform.
