BGC Group's FMX Futures Exchange Gets CFTC' Nod to Operate Exchange for US Treasury and SOFR Futures

BGC Group, Inc. (BGC Group), a leading global brokerage and financial technology company, announced today that its FMX Futures Exchange has obtained approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate an exchange for U.S. Treasury and SOFR futures for trading on FMX.

Howard W. Lutnick, Chairman and CEO of BGC Group, commented: "With this CFTC approval, we will combine our leading Fenics UST cash Treasury platform with our FMX Futures Exchange to deliver competition across the CME's U.S. interest rate complex. For the first time, the most valuable futures market in the world will have real competition."

He further explained: "Similar to U.S. interest rate futures, the wholesale U.S.Treasury market had historically been dominated by the CME until we launched Fenics UST. Since our launch, Fenics UST has grown rapidly, reaching 25 percent market share during the third quarter of 2023, up from 18 percent only a year ago. We will execute the same playbook with our FMX Futures Exchange."

FMX's clearing agreement signed in late 2021 with LCH SwapClear, one of the largest holders of interest rate collateral in the world, positions FMX to compete and reshape the U.S. interest rate market, the Group noted in the official press release.

Robert Allen, President of FMX Futures Exchange, stated: "FMX's global connectivity and vast distribution, combined with LCH's highly efficient cross-margin benefits will challenge CME's most valuable vertical, its U.S. interest rate complex. FMX is the first and only exchange to launch with all the tools necessary to compete and grow in the world's most important market."

Isabelle Girolami, CEO of LCH Limited, added: "Our relationship with FMX is a key example of our commitment to open markets, collaboration and delivering further choice to the market. We are delighted to be working with a highly innovative exchange to bring a complete service offering across USD swaps, UST futures and SOFR STIRs to our members and clients. Our clearing capabilities will allow for portfolio margining across all these expressions of rates risk, meaningful margin efficiencies and effective risk management."

In the end of 2022, Fazzaco reported that BGC Group, formerly known as BGC Partners, had completed its rebranding and corporate structure transformation​. The group's legal structure has been transformed into a full C-Corporation.