R.J.O'Brien & Associates Canada Expands Exchange Membership, Joins Montreal Exchange

Developed markets are continuing to attract investor interest, as one of the oldest independent brokerage firms in the US increases its position in the Canadian derivatives market. R.J. O'Brien & Associates, a leading global Futures Commission Merchant (FCM), has reported that its Canadian entity will be joining the Montreal Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term as a clearing member. The move highlights R.J. O'Brien’s (RJO) commitment on providing accessibility and connectivity to users trading in North American financial instruments.

The broker that crossed its hundredth year in existence this year has been one of the US’s most recognised independent players. The firm first launched a domestic presence in neighbouring Canada, in 2010, with three offices in the G8 nation, the firm is extending its membership in the Canadian market through the current appointment. The firm has positioned itself as a strategic player, reporting that since its launch, the RJO affiliate has more than doubled its staff and set up offices in Toronto, Winnipeg and Calgary.

The firm’s President and Chief Executive Officer, Keith Riddoch, commented in a press statement: "We're excited to add direct clearing membership in MX as part of our value proposition in Canada. In just a few years, we've grown our business exponentially here, and we expect to open our first branch office in Montreal next year. We also plan to build on our team of experienced institutional futures brokers, both in Montreal and throughout Canada, while continuing to provide individual and commercial clients with the premier service that's been a hallmark of RJO for the past 100 years."

Montreal Exchange has been a strong player in the North American derivatives sector for over thirty years, the exchange being the first in the region to deploy a fully electronic solution in 2001. The exchange has enhanced its product range to cover a number of Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term as OTC products continue to be in the limelight.

The Montréal Exchange (MX), Canada's derivatives exchange, and Eris Exchange, a US-based futures exchange, have announced a licensing agreement for MX and Canadian Derivatives Clearing Corporation (CDCC) to offer trading and clearing of Canadian dollar swap futures and options based on the Eris Methodology, Eris Exchange's unique product design and intellectual property for constructing swap futures as a capital-efficient alternative to OTC swaps.

The Montreal Exchange is part of the TMX Group, Canada's two main exchanges merged in 2007 to form the most liquid venue in the country, the deal was reported as $1.20 billion.

RJO’s international offices cater to a diverse offering for clients, its UK arm offers a number of FX derivatives and connects to major ECNs.