Virtu Financial has been chosen to become a liquidity provider for the launch of the Global Markets Exchange Group (GMEX) exchange, providing liquidity for its Interest Rate Swap Constant Maturity Future (CMF) contracts.
Orders will be matched on the GMEX Exchange platform, while trade clearing and confirmation will go through Eurex.
The exchange is scheduled to launch in April, subject to regulatory approval for trading and clearing CMF at Eurex. GMEX received its own regulatory approval from the Financial Conduct Authority in December 2014.
CEO of GMEX Hirander Misra, said: "We continue to make great progress leading up to our launch in terms of on-boarding buy side firms, banks and futures trading houses both directly and through vendor connections."
Douglas Cifu, CEO of Virtu Financial, added: "This decision to expand liquidity provision to GMEX Exchange is a logical extension of Virtu's business objective to lower costs for both retail and institutional investors by supplying competitive bids and offers, without seeking to take on risky directional positions.”
"The GMEX CMF contract offers an innovative lower margin exchange traded alternative to OTC interest rate swaps for hedging.”
