Global Derivatives Indices (GDI) has formed a strategic partnership with Tradition, the interdealer broking arm of Compagnie Financière Tradition, to use prices from Trad-X to calculate a new USD version of GDI’s Constant Maturity Index (CMI).
This will underpin the GMEX interest rate swap (IRS) Constant Maturity Futures (CMF) contracts.
Under the terms of the partnership agreement, GDI will source firm tradable bids and offers from Trad-X, Tradition’s global trading platform, to calculate a new USD-denominated weighted-average index designed to reflect the USD IRS market in real-time. Additionally, Trad-X will contribute prices to the existing GDI EUR IRS index in real-time.
GDI’s CMI indices are used as the basis for the CMF IRS contracts, which will be traded on GMEX Group’s soon to be launched exchange, subject to UK FCA approval. The initial launch will be focused on EUR-denominated CMF contracts, closely followed by USD.
“Working with Trad-X, is an important step forward because it enables us to enhance our Euro CMI underlying data, and more importantly expand our Constant Maturity Index offerings into US Dollars This in turn will facilitate the launch of our US Dollar-denominated CMF contract next year on GMEX Exchange,” says Hirander Misra, CEO of GMEX Group and chairman of GDI.
“Trad-X is pleased to be providing our market leading data to the GMEX CMI. Tradition is wholly supportive of market-led initiatives that create transparency and products that the market can use for effective risk management purposes,” says Dan Marcus, CEO of Trad-X.
“The CMI indices are unique in the breadth and depth of the data they use from a variety of sources. We believe that the CMI has the potential to become the industry’s most representative index of fair value for the interest rate swaps market”, says VJ Angelo, president of GMEX Group and CEO of GDI.
