Global Markets Exchange Group Limited (GMEX) and the international derivatives market Eurex have signed an agreement under which Eurex will license GMEX’s euro-denominated constant maturity future (CMF) for trading via Eurex’s multilateral trade registration (MTR) service and clearing on Eurex Clearing.
The CMF is based on the interest rate swap index average (IRSIA) and accurately tracks the interest rate exposure at each point on the yield curve by removing the expiry date and marking the contract to market against an IRSIA constant maturity index on a daily basis. Thereby the contract facilitates the management of interest rate exposure without a constant need to re-adjust and maintains the liquidity of a given maturity from two to 30 years.
Under the terms of the arrangement, transactions in CMF contracts will be arranged on GMEX’s trading platform and executed at Eurex Exchange with clearing taking place at Eurex Clearing. The licensing model will also enable Eurex Exchange members to trade GMEX’s euro-denominated CMF under their current membership and benefit from existing clearing agreements and infrastructure.
GMEX has been granted regulatory approval from the UK Financial Conduct Authority (FCA). The planned product launch is subject to regulatory approval needed for Eurex Clearing. The GMEX execution platform is already operational for user acceptance testing, with a growing number of vendors and clients connecting for end-to-end testing.
“We continue to make very good progress with our launch and this new licensing arrangement with Eurex provides firms with a well-established mechanism to trade and clear our CMF contracts,” said Hirander Misra, chief executive officer (CEO) of GMEX Group. “We are getting very strong support from the trading community particularly the buy-side.”
GMEX is a wholly owned subsidiary of Global Markets Exchange Group International LLP (GMEX Group).
There are various ways for financial institutions to benefit from advanced technologies and business models provided by FinTech's. Whether a business' approach is radical or incremental, data management can help a company to increase their return on investment, argues André Casterman, INTIX.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.
As the May 25 deadline for Europe’s General Data Protection Regulation (GDPR) inches closer, many treasurers are being lumped with the task of ensuring their wider company is compliant.
Apps are a critical part of treasury's shift into mobile banking as 67% of treasury and corporate finance professionals said mobile banking services are of particular interest to them in a recent survey.