Revolutionizing the U.S. Interest Rate Futures Market: FMX Futures Exchange Launches with SOFR Futures

In a groundbreaking move, BGC Group, Inc. (Nasdaq: BGC) and ten of the world's leading investment banks and market-making firms have announced the successful launch of the highly anticipated FMX Futures Exchange. This new exchange is poised to disrupt the U.S. SOFR futures market, offering clients unparalleled innovation, superior pricing, and dramatically improved capital efficiency.

Unlocking Unprecedented Opportunities in the USD Rates Derivatives Market

Introducing Competition and Choice to the SOFR Futures Landscape

The launch of the FMX Futures Exchange marks a significant milestone in the evolution of the U.S. interest rate futures market. By introducing real competition to the SOFR futures space, the exchange aims to empower clients with a range of benefits that were previously unavailable. Through its state-of-the-art trading system and strategic partnerships, FMX is poised to redefine the landscape, providing clients with innovative solutions and unparalleled value.One of the key advantages of the FMX Futures Exchange is its ability to deliver superior pricing to clients. By leveraging the expertise and resources of its strategic partners, the exchange is able to offer highly competitive pricing that undercuts the existing market. This, in turn, translates to significant cost savings for clients, enabling them to optimize their trading strategies and enhance their overall profitability.

Harnessing the Power of Cross-Margin Capabilities

A critical component of the FMX Futures Exchange's value proposition is its clearing partnership with LCH Limited (LCH), a fully approved CFTC Derivatives Clearing Organization and one of the largest clearers of interest rate swaps globally. This partnership unlocks a remarkable opportunity for clients to benefit from LCH's cross-margin capabilities.LCH currently holds $225 billion in interest rate swap collateral, and FMX members can now leverage this vast pool of liquidity to cross-margin their eligible U.S. interest rate futures traded on the exchange. This groundbreaking feature dramatically improves capital efficiency, allowing clients to free up valuable resources that can be redeployed to other strategic initiatives.

Fostering Increased Resiliency and Liquidity in the USD Rates Derivatives Market

The collaboration between FMX and LCH not only enhances capital efficiency but also bolsters the overall resilience and liquidity of the USD rates derivatives market. By providing clients with access to LCH's extensive clearing capabilities, the FMX Futures Exchange ensures that market participants can benefit from increased market depth and improved price discovery.This partnership also underscores LCH's commitment to delivering choice and innovation to the market. By supporting the launch of the FMX Futures Exchange, LCH demonstrates its dedication to empowering market participants and fostering a more competitive and dynamic trading environment.

Expanding the FMX Ecosystem: From Treasuries to Foreign Exchange

The FMX Futures Exchange is part of the broader FMX Holdings, LLC ecosystem, which includes the world's fastest-growing cash U.S. Treasuries marketplace and a rapidly expanding spot Foreign Exchange platform. This integrated approach allows the FMX ecosystem to leverage synergies and provide clients with a comprehensive suite of trading solutions across multiple asset classes.By expanding its offerings beyond SOFR futures to include U.S. Treasury futures and spot Foreign Exchange, the FMX ecosystem is poised to become a one-stop-shop for clients seeking to optimize their trading strategies and access a diverse range of financial instruments. This holistic approach positions FMX as a formidable player in the global financial markets, catering to the evolving needs of its client base.

A Collaborative Effort Driven by Industry Leaders

The FMX Futures Exchange is the result of a collaborative effort between BGC Group, Inc. and ten of the world's leading investment banks and market-making firms. This impressive roster of equity partners, which includes Bank of America, Barclays, Citadel Securities, Citi, Goldman Sachs, J.P. Morgan, Jump Trading Group, Morgan Stanley, Tower Research Capital, and Wells Fargo, underscores the exchange's strong industry backing and the collective vision to transform the U.S. interest rate futures market.By leveraging the expertise and resources of these industry titans, the FMX Futures Exchange is well-positioned to capitalize on the tremendous opportunities presented by the evolving USD rates derivatives landscape. This collaborative approach ensures that the exchange can draw upon a wealth of market insights, technological capabilities, and client relationships to deliver unparalleled value to its users.