Demand Derivatives has partnered with GMEX Group (GMEX) to launch a “revolutionary” futures exchange and reduced-risk blockchain clearing house.
The partnership will further align interests and share in the success of the project, and GMEX will take a minority equity stake in Demand Derivatives.
The US regulated futures exchange consists of RealDemand Board of Trade (RealBOT) and clearing house, RealDeamnd Clearing (RealClear).
According to GMEX, RealBot and RealClear will create unique and complete solutions to problems currently affecting the futures industry.
Specifically, the exchange’s products will seek to eliminate systemic risk, clear almost instantly, significantly reduce transaction costs, lower fees, and provide a new set of risk migration features to market participants.
Four transformative instruments will be used in the process, which are expected to leapfrog existing processes.
This includes limited-risk futures contracts, realised-volatility futures and futures options, forward start daily futures options, and global index products (cut costs and control index risk effectively).
Robert Krause, chairman and CEO of Demand Derivatives, commented: “The low latency and cutting-edge technology offered by GMEX make them the perfect partner to advance our goal to bring profound change to the futures industry.”
Hirander Misra, chairman of GMEX Technologies and CEO of GMEX Group, stated: “We are delighted and excited that Demand Derivatives has chosen to partner with GMEX to enable their vision to deliver a new generation of regulated futures exchanges.”
Hirander added: “Their derivative instrument designs have the potential to substantially reduce risk and dramatically cut costs to market participants.”
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