Global Markets Exchange (GMEX) Group and inter-dealer broker Tradition have formed a strategic partnership to launch USD interest rate swap futures.
GMEX, a new London-based derivatives exchange set up by former Chi-X executive Hirander Misra, will use prices from Tradition’s Trad-X platform to calculate a USD version of its Constant Maturity Index (CMI), which will underpin its new interest rate swap futures contracts.
Global Derivatives Indices, a subsidiary of GMEX, will source tradable bids and offers from Trad-X to calculate a USD denominated weighter-average index to reflect the USD interest rate swap market in real-time. It will also contribute to the existing euro index.
Constant Maturity Futures are set to traded on GMEX’s exchange, which is due to launch soon subject to approval from the Financial Conduct Authority. The first contracts will be euro denominated with dollar contracts to follow soon after.
“Working with Trad-X, is an important step forward because it enables us to enhance our Euro CMI underlying data, and more importantly expand our Constant Maturity Index offerings into US dollars This in turn will facilitate the launch of our US dollar-denominated Constant Maturity Futures (CMF) contract next year on GMEX Exchange,” said Misra, CEO of GMEX.