Listed derivative broker Newedge has agreed to provide execution and clearing services for Hirander Misra’s new venture, Global Market Exchange (GMEX) Group.
Newedge will become a trading and clearing member of GMEX, providing services for interest rate swap futures for both buy- and sell-side clients.
The first product range that will be available on GMEX is constant maturity futures. Newedge will provide clearing and execution for these products, as well as future products aimed at asset managers, hedge funds, sell-side banks and futures trading firms.
Newedge said that increase venue competition and new product innovation will help European investors meet their regulatory obligations.
Chris Topple, global head of prime clearing services at Newedge, said: "Our market research indicates significant levels of interest in the GMEX exchange platform, not least because it is a timely and relevant response to help meet the G20-led market reforms to reduce systemic risk by moving bi-laterally managed OTC derivatives to transparent electronic trading venues supported by central counterparty clearing houses."
GMEX, a London-headquartered derivative exchange, is currently seeking regulatory approval from the UK’s Financial Conduct Authority to operate as a multilateral trading facility (MTF) and expects to launch in the first half of 2014.