Interdealer broker BGC Group has received approval from the Commodity Futures Trading Commission (CFTC) for its FMX Futures Exchange to operate as an exchange for US Treasury and SOFR futures.
Howard Lutnick
Howard Lutnick, chair and chief executive of BGC Group, said: “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 US interest rate complex. For the first time, the most valuable futures market in the world will have real competition.
“Similar to US interest rate futures, the wholesale US 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.”
Read more: CME Group continues SOFR conversions as demand grows
Fenics Markets Xchange combines BGC’s low latency electronic trading platform for US Treasuries, Fenics UST, and FMX US futures trading on one platform.
It has a clearing services agreement with LCH, offering an integrated trading and clearing solution.
Robert Allen, president of FMX Futures Exchange, said: “FMX’s global connectivity and vast distribution, combined with LCH’s highly efficient cross-margin benefits will challenge CME’s most valuable vertical, its US 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.”