Industry SectorsFinancial ServicesEurex, GMEX Cooperate in Swap Futures Trading and Clearing

Eurex, GMEX Cooperate in Swap Futures Trading and Clearing

Global Markets Exchange Group Limited (GMEX) and the international derivatives market Eurex have signed an agreement under which Eurex will license GMEX’s euro-denominated constant maturity future (CMF) for trading via Eurex’s multilateral trade registration (MTR) service and clearing on Eurex Clearing.

The CMF is based on the interest rate swap index average (IRSIA) and accurately tracks the interest rate exposure at each point on the yield curve by removing the expiry date and marking the contract to market against an IRSIA constant maturity index on a daily basis. Thereby the contract facilitates the management of interest rate exposure without a constant need to re-adjust and maintains the liquidity of a given maturity from two to 30 years.

Under the terms of the arrangement, transactions in CMF contracts will be arranged on GMEX’s trading platform and executed at Eurex Exchange with clearing taking place at Eurex Clearing. The licensing model will also enable Eurex Exchange members to trade GMEX’s euro-denominated CMF under their current membership and benefit from existing clearing agreements and infrastructure.

GMEX has been granted regulatory approval from the UK Financial Conduct Authority (FCA). The planned product launch is subject to regulatory approval needed for Eurex Clearing. The GMEX execution platform is already operational for user acceptance testing, with a growing number of vendors and clients connecting for end-to-end testing.

“We continue to make very good progress with our launch and this new licensing arrangement with Eurex provides firms with a well-established mechanism to trade and clear our CMF contracts,” said Hirander Misra, chief executive officer (CEO) of GMEX Group. “We are getting very strong support from the trading community particularly the buy-side.”

GMEX is a wholly owned subsidiary of Global Markets Exchange Group International LLP (GMEX Group).

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