Clients of ION’s execution and post-trade offerings will now be able to conduct transactions via the new exchange.
Trading and operations systems provider ION has launched connectivity to the recently launched FMX Futures Exchange.
The connectivity will allow firms to trade via ION’s execution and post-trade product suite, officials say.
ION will support transactions via the new futures exchange through ION’s “cleared derivatives front-, middle-, and back-office platforms.” ION’s offerings for cleared derivatives include order management systems, order execution, trading, and trade processing systems, officials say.
Last month, BGC Group, Inc. and 10 investment banks and market-making firms launched the FMX Futures Exchange, which encompasses a U.S. interest rate futures exchange, a spot foreign exchange (FX) platform, and a U.S. cash treasuries platform, officials say.
FMX Futures Exchange, L.P., is a designated contract market (DCM) that is registered with and regulated by the Commodity Futures Trading Commission (CFTC), officials say.
The FMX division lists interest rate futures contracts, including SOFR futures, for intermediated trading. The new exchange also includes FMX UST, Repo, and FX platforms to provide integrated trading solutions, officials say.
The exchange is available for trading SOFR futures — “the largest notional futures contract in the world” —and will add U.S. treasury futures in the first quarter of 2025, officials say.
Margin offsets are available through a clearing partnership with LCH SwapClear, an over-the-counter (OTC) interest rate clearinghouse.
LCH’s clearing service offers “portfolio optimization across listed and OTC positions, allowing clearing members and their clients to potentially realize lower margin requirements and reduced counterparty risk,” officials say.
“All FMX Futures positions are eligible for cross-margining against the member’s SwapClear portfolio across more than a dozen major currencies,” officials add.
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