Deutsche Börse Sees Potential in latest Derivatives Trading Venue GMEX Group - Takes Minority Stake

German equities Exchange , Deutsche Börse AG, has announced that it has taken a stake in the latest derivatives exchange formed post G20 regulatory reforms. The Frankfurt-based exchange, which celebrated 20 years of establishment, has paid ‘a single-digit million GBP' figure for the single stake, as stated in the official notification.

Regulatory reforms taking place in the USA under Dodd-Frank and in Europe under EMIR and MiFID II have evolved the market place for-over-the counter products, and have created new opportunities for venues looking to absorb transactions migrating from the OTC environment to an exchanged trade environment.

GMEX Group was founded by Hirander Misra, one of the key people behind Chi-X a successful MTF, the London-based exchange launched earlier this year is focused on the launch of a suite of new products, including original Interest Rate Swap Futures contracts, derivatives indices and emerging markets exchange business partnerships enabled by Multi-Asset trading technology.

“We are immensely pleased with this investment from such a strategically important global exchange partner and view this as a clear endorsement of our vision and business model, whilst maintaining our independence. We look forward to the broad input from Deutsche Börse Group, which can only serve to refine and improve the direction of our new exchange, to the benefit of financial derivatives traders and end users across the world.

The global regulatory landscape is evolving quickly and we intend to establish GMEX Group as one of the most agile and capable providers in the space.” said Hirander Misra, CEO of GMEX Group.

GMEX has put forward proposals for a range of exchanges including; the London Derivatives Exchange, Global Securities Exchange, Global Derivatives Exchange and Global Commodities Exchange, all are expected to be based in London.