Global Markets Exchange Group Limited (GMEX) announced today that leading global electronic market maker Virtu Financial (Virtu) will become a liquidity provider.
Virtu Financial will join as a participant of GMEX Exchange, which will be operated by GMEX, to offer liquidity in GMEX’s pioneering Interest Rate Swap Constant Maturity Future (CMF) contracts. Orders will be matched on the GMEX exchange platform, with trade confirmation and clearing occurring at Eurex.
"We are pleased to have Virtu join as a committed liquidity provider for launch," said Hirander Misra, CEO of GMEX Group. "We continue to make great progress leading up to our launch in terms of on-boarding buy side firms, banks and futures trading houses both directly and through vendor connections."
"This decision to expand liquidity provision to GMEX Exchange is a logical extension of Virtu's business objective to lower costs for both retail and institutional investors by supplying competitive bids and offers, without seeking to take on risky directional positions.” said Douglas Cifu, CEO of Virtu Financial. "The GMEX CMF contract offers an innovative lower margin exchange traded alternative to OTC interest rate swaps for hedging”.
GMEX’s exchange is scheduled to launch in the early part of April 2015 subject to regulatory approval for the trading and clearing of the CMF at Eurex. GMEX received its regulatory approval by the UK Financial Conduct Authority (FCA) in December 2014.