Revolutionizing the U.S. Interest Rate Futures Market: The Launch of the FMX Futures Exchange

In a groundbreaking move, BGC Group, Inc. 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 status quo, offering clients a game-changing platform for trading SOFR futures, the largest notional futures contract in the world, and soon, U.S. treasury futures.

Unlocking Unprecedented Opportunities in the USD Rates Derivatives Market

Fostering Competition and Innovation in the SOFR Futures Market

The launch of the FMX Futures Exchange marks a significant milestone in the evolution of the U.S. interest rate futures landscape. Driven by a vision to introduce real competition and provide clients with much-needed innovation, the exchange is poised to disrupt the status quo. By offering superior pricing and dramatically improved capital efficiency, the FMX Futures Exchange aims to redefine the way traders and investors approach the SOFR futures market.The exchange's strategic partnership with LCH Limited, a fully approved CFTC Derivatives Clearing Organization and one of the largest clearers of interest rate swaps in the world, is a key differentiator. This collaboration enables FMX to provide clients with significant capital savings through cross-margin capabilities. By leveraging LCH's extensive $225 billion of interest rate swap collateral, FMX members can expect to benefit from increased margin efficiencies and liquidity in the USD rates derivatives market.

Expanding the Horizon with U.S. Treasury Futures

The FMX Futures Exchange's roadmap extends beyond SOFR futures, with plans to add U.S. treasury futures in the first quarter of 2025. This strategic move will further solidify the exchange's position as a comprehensive platform for trading a diverse range of interest rate products. By offering both SOFR and U.S. treasury futures, the FMX Futures Exchange aims to provide clients with a one-stop-shop for their interest rate trading needs, enhancing market efficiency and liquidity.

Leveraging Cutting-Edge Technology and Global Connectivity

The FMX Futures Exchange has been designed with a focus on technological innovation and global connectivity. As the first U.S. interest rate futures exchange to launch with a fully operational, state-of-the-art trading system, the platform is poised to deliver a seamless and efficient trading experience for its clients. This cutting-edge infrastructure, combined with the exchange's global reach, positions FMX as a formidable player in the interest rate futures market.

A Collaborative Effort Backed by Industry Leaders

The FMX Futures Exchange is a part of FMX Holdings, LLC, which includes the world's fastest-growing cash U.S. treasuries marketplace and a rapidly growing spot Foreign Exchange platform. The equity partners of FMX Holdings, LLC comprise a who's who of the financial industry, including Bank of America, Barclays, Citadel Securities, Citi, Goldman Sachs, J.P. Morgan, Jump Trading Group, Morgan Stanley, Tower Research Capital, and Wells Fargo.This impressive lineup of industry leaders underscores the FMX Futures Exchange's commitment to innovation, market expertise, and a shared vision for transforming the U.S. interest rate futures landscape. By leveraging the collective resources and expertise of these strategic partners, the exchange is well-positioned to capitalize on the tremendous opportunities in the USD rates derivatives market.