Sign up
Log in
UPDATE 1-BGC Group's FMX Futures gets funding from banking consortium
Share
Listen to the news
UPDATE 1-BGC Group's FMX Futures gets funding from banking consortium

Adds quote, context

- Brokerage BGC Group BGC.O said on Thursday its exchange platform FMX Futures was valued at $667 million after securing investment from a consortium including Bank of America BAC.N and Citigroup C.N.

The consortium - which also includes Goldman Sachs GS.N, JPMorgan JPM.N, Wells Fargo WFC.N, Barclays BARC.L, Morgan Stanley MS.N and Citadel Securities - has become minority owners of FMX, according to BGC Group.

"We have brought together ten of the most important global investment banks and market making firms to create a premier trading venue for the interest rate markets," said Howard Lutnick, chairman and chief executive of BGC Group of FMX.

Earlier this year, BGC received regulatory approval for FMX Futures to operate an exchange for Secured Overnight Financing Rate (SOFR) futures and U.S. Treasuries. FMX Futures is expected to launch in September 2024, BGC said on Thursday.

The platform will rival exchange operator CME Group in the interest rates derivatives market at a time of high volatility in bond markets, as investors debate the timing of the Federal Reserve's much-anticipated shift to lower interest rates.

In the first quarter, exchange operator CME Group's profit beat analyst expectations, the company said on Wednesday, helped by record growth in futures and options contracts tied to U.S. Treasuries.



(Reporting by Mehnaz Yasmin and Niket Nishant in Bengaluru, additional reporting by Davide Barbuscia in New York; Editing by Shounak Dasgupta and David Evans)

((Mehnaz.Yasmin@thomsonreuters.com))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
What's Trending
No content on the Webull website shall be considered a recommendation or solicitation for the purchase or sale of securities, options or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.