BGC Group's FMX Futures gets funding from banking consortium (updated)

Bgc

25/04/2024 17:23

(Adds quote, context)
       April 25 (Reuters) - 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))