Global brokerage and financial technology company BGC Group, Inc. (NASDAQ:BGC) announced that the FMX Futures Exchange has received approval from the Commodity Exchange Commission (CFTC) to operate an exchange for US Treasury and SOFR futures contracts.
Howard W. Lutnick, Chairman and CEO of BGC Group, said:
“With this CFTC approval, we will combine our leading Fenics UST cash Treasury platform with the FMX Futures Exchange to offer competition across the entire US CME interest rate complex. For the first time, the world’s most valuable futures market will have real competition.”
Similar to US interest rate futures, the wholesale US Treasury market was historically dominated by the CME until the launch of Fenics UST. Since our launch, Fenics UST has grown rapidly, reaching 25 percent market share by Q3 2023, up from 18 percent just a year ago. We will run the same book as the FMX Futures Exchange.”
FMX’s clearing agreement with LCH SwapClear, one of the world’s largest holders of interest rate collateral, uniquely positions FMX to compete and reshape the US interest rate market.
Robert Allen, President of FMX Futures Exchange, added:
“FMX’s global connectivity and massive distribution, combined with LCH’s highly efficient multi-margin benefits will challenge CME’s most valuable industry, the US interest rate complex. FMX is the first and only exchange that comes with all the necessary tools to compete and grow in the world’s most important market.”