GMEX’s CMF granted CFTC approval

Global Markets Exchange Group Limited (GMEX Exchange) has announced approval from the Commodity Futures Trading Commission (CFTC) to offer its Interest Rate Swap Constant Maturity Futures (IRS CMF) to U.S.-based firms via Eurex's U.S. terminals. Clearing of the GMEX IRS CMF takes place at Eurex Clearing. Transactions can be processed via direct market access or Eurex's Trade Entry Service.

Hirander Misra, CEO and Co-Founder of GMEX Exchange commented: “With the CFTC approval, we can further expand by offering our IRS CMF to U.S.-based firms. This is an important part of our growth strategy as it enables a wider range of buy and sell-side participants to gain access to our innovative products to facilitate effective hedging of their interest rate exposure.”

The IRS CMF contracts bring the benefits of futures trading closer to OTC products, while delivering the efficiencies of centralised order execution, standardised central clearing and hedging of interest rate exposure. GMEX Exchange has signed a number of firms including Bank of America Merrill Lynch, Société Générale and R.J. O’Brien Limited to trade the contract.

The contracts provide 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.

Further information

CFTC 30.5 Exemption
Before any non-US firm may accept US-based clients, that firm must either be regulated by the CFTC, or obtain an exemption from regulation from the CFTC. Exemptions are granted if a firm can demonstrate that it is satisfactorily regulated by a regulator in another jurisdiction, and certain other requirements are met.

GMEX obtained its CFTC 30.5 exemption on 31/7/2015, and have an NFA (National Futures Association) ID of 0483403.  The registration can be found on this link: https://www.nfa.futures.org/basicnet/Details.aspx?entityid=4gZz9EaGK10%3d&rn=Y

IRS CMF Product Approval
The CFTC must approve every product before US-based clients may trade it. For the IRS CMF, responsibility for this belongs to Eurex, because the IRS CMF is listed on Eurex Exchange and cleared by Eurex Clearing.

About GMEX Group
Global Markets Exchange Group Limited (GMEX) is authorised and regulated by the UK Financial Conduct Authority (FCA) to operate GMEX Exchange. GMEX is a wholly-owned subsidiary of GMEX Group.

GMEX Group is a set 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.

For more information, visit www.gmex-group.com or follow us on Twitter @GMEX_Group

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).

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