The BGC Group, a global brokerage and financial technology group, has made a interesting announcement that could significantly alter the landscape of U.S. Treasury and SOFR futures trading. Its FMX Futures Exchange has recently received the green light from the U.S. Commodity Futures Trading Commission (CFTC) to operate an exchange for these globally dominant futures contracts, a move poised to inject competition into a market historically monopolized by the CME.
The Vision: Competition and Growth
Howard W. Lutnick, Chairman, and CEO of BGC Group (website), envisions a transformative impact on the U.S. interest rate complex. “With CFTC approval in hand, we’re set to integrate our leading Fenics UST cash Treasury platform with the FMX Futures Exchange, ushering in unprecedented competition against the CME’s stronghold,” stated Lutnick.
FMX’s collaboration with LCH SwapClear, a major player in interest rate collateral, is a strategic move that could reshape the U.S. interest rate market. LCH SwapClear’s robust clearing capabilities, combined with FMX’s global connectivity and distribution prowess, are expected to present a formidable challenge to CME’s dominance in the U.S. interest rate sector.
Isabelle Girolami, CEO of LCH Limited, expressed enthusiasm about the partnership with FMX. “Our relationship with FMX reflects our commitment to open markets and collaboration, offering an expanded service suite across USD swaps, UST futures, and SOFR STIRs to our members and clients,” said Girolami.
