Swap futures trading venue GMEX is gearing up for its Q2 launch by looking to increase its support from the buy-side.
GMEX has secured backing from Eurex and Societe Generale Prime Services this year as it looks to build momentum in its constant maturity swap futures from day one.
Hirander Misra, CEO of GMEX told theTRADEnews.com that the platform has been receiving very strong support from the buy-side and is in further talks with hedge funds and asset managers following the backing from Eurex and Societe Generale.
“Everything that we have done from the outset has been to do with structuring the product with the feedback from key firms on the buy-side. Equally as we move ahead, everything we are doing from a market structure standpoint is to do with inherent buy-side demand.”
GMEX’s flagship product is a swap future which tracks the interest rate exposure at each point on the yield curve by removing the expiry date and marking the contract to market against GMEX’s own Constant Maturity Index on a daily basis.
The deal with Eurex means the swap futures will be listed on the German exchange and cleared through its central counterparty, though the transactions will still be arranged through GMEX.
While it remains unclear just how the market will react to swap futures – an alternative to OTC interest rate swaps which are set to become increasingly costly to trade – GMEX has been seeking tie-ups prior to its launch in order to boost its chances of success.
“One of the things we are targeting is buy-side EMS [execution management system] products, we want those there from the outset,” added Misra.
“We are also working with Bloomberg to have our data out there from day one. This is with a view of making it easier for the buy-side to access and trade the product in the way they are accustomed to without us trying to re-invent the wheel.”