Financial and Business News

FMX Futures Exchange Gains CFTC Approval for US Treasury and SOFR Futures

Tuesday, 23/01/2024 | 10:34 GMT by Tareq Sikder
  • Highly traded globally, US Treasury and SOFR futures are among the world's most traded contracts.
  • FMX's clearing pact with LCH SwapClear strengthens its market position.
bgc

BGC Group, Inc., a global brokerage and financial technology company, has announced that FMX Futures Exchange has received approval from the Commodity Futures Trading Commission (CFTC) to operate an exchange for US Treasury and SOFR (Secured Overnight Financing Rate) futures. These futures contracts are among the most widely traded in the world.

Clearing Agreement with LCH SwapClear

FMX's clearing agreement with LCH SwapClear, one of the largest holders of interest rate collateral globally, uniquely positions FMX to compete in the US interest rate market.

Howard W. Lutnick, Chairman and CEO of BGC Group, Source: LinkedIn

Robert Allen, the President of FMX Futures Exchange, emphasized: "FMX’s global connectivity and vast distribution, combined with LCH’s highly efficient cross-margin benefits will challenge CME’s most valuable vertical, its U.S. interest rate complex. FMX is the first and only exchange to launch with all the tools necessary to compete and grow in the world’s most important market."

Howard W. Lutnick, the Chairman and CEO of BGC Group, stated: "With this CFTC approval, we will combine our leading Fenics UST cash Treasury platform with our FMX Futures Exchange to deliver competition across the CME’s U.S. interest rate complex. For the first time, the most valuable futures market in the world will have real competition."

Highlighting the success of Fenics UST in the US Treasury market, Lutnick noted: "Similar to U.S. interest rate futures, the wholesale U.S. Treasury market had historically been dominated by the CME until we launched Fenics UST. Since our launch, Fenics UST has grown rapidly, reaching 25 percent market share during the third quarter of 2023, up from 18 percent only a year ago. We will execute the same playbook with our FMX Futures Exchange."

BGC Group's Q3 2023 Revenue Soars Across Americas, EMEA, and Asia Pacific

In Q3 2023, BGC Group reported a substantial increase of 15.9% in revenue to $482.7 million, with notable growth of 19% across the Americas, 16.9% in the EMEA, and 5.9% in the Asia Pacific, as highlighted by Finance Magnates. Rates and Credit revenues improved 12.1% and 9.6%, while FX revenues rose 8.6%, and Energy and Commodities revenues grew 35%.

Pre-tax adjusted earnings saw a robust 23.1% increase to $101.9 million, with a 125 basis points improvement in margins to 21.1%. Post-tax adjusted earnings rose by 21.4% to $94.1 million ($0.19 per share), and adjusted EBITDA surged 27% Y-o-Y to $135.9 million, marking the twelfth consecutive quarter of Y-o-Y margin expansion.

BGC Group, Inc., a global brokerage and financial technology company, has announced that FMX Futures Exchange has received approval from the Commodity Futures Trading Commission (CFTC) to operate an exchange for US Treasury and SOFR (Secured Overnight Financing Rate) futures. These futures contracts are among the most widely traded in the world.

Clearing Agreement with LCH SwapClear

FMX's clearing agreement with LCH SwapClear, one of the largest holders of interest rate collateral globally, uniquely positions FMX to compete in the US interest rate market.

Howard W. Lutnick, Chairman and CEO of BGC Group, Source: LinkedIn

Robert Allen, the President of FMX Futures Exchange, emphasized: "FMX’s global connectivity and vast distribution, combined with LCH’s highly efficient cross-margin benefits will challenge CME’s most valuable vertical, its U.S. interest rate complex. FMX is the first and only exchange to launch with all the tools necessary to compete and grow in the world’s most important market."

Howard W. Lutnick, the Chairman and CEO of BGC Group, stated: "With this CFTC approval, we will combine our leading Fenics UST cash Treasury platform with our FMX Futures Exchange to deliver competition across the CME’s U.S. interest rate complex. For the first time, the most valuable futures market in the world will have real competition."

Highlighting the success of Fenics UST in the US Treasury market, Lutnick noted: "Similar to U.S. interest rate futures, the wholesale U.S. Treasury market had historically been dominated by the CME until we launched Fenics UST. Since our launch, Fenics UST has grown rapidly, reaching 25 percent market share during the third quarter of 2023, up from 18 percent only a year ago. We will execute the same playbook with our FMX Futures Exchange."

BGC Group's Q3 2023 Revenue Soars Across Americas, EMEA, and Asia Pacific

In Q3 2023, BGC Group reported a substantial increase of 15.9% in revenue to $482.7 million, with notable growth of 19% across the Americas, 16.9% in the EMEA, and 5.9% in the Asia Pacific, as highlighted by Finance Magnates. Rates and Credit revenues improved 12.1% and 9.6%, while FX revenues rose 8.6%, and Energy and Commodities revenues grew 35%.

Pre-tax adjusted earnings saw a robust 23.1% increase to $101.9 million, with a 125 basis points improvement in margins to 21.1%. Post-tax adjusted earnings rose by 21.4% to $94.1 million ($0.19 per share), and adjusted EBITDA surged 27% Y-o-Y to $135.9 million, marking the twelfth consecutive quarter of Y-o-Y margin expansion.

Topics
institutional
CFTC
BGC Group
About the Author: Tareq Sikder
Tareq Sikder
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A Forex technical analyst and writer who has been engaged in financial writing for 12 years.

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