Global Derivatives Indices (GDI), a wholly owned subsidiary of Global Markets Exchange Group International (GMEX Group), is forming a strategic collaboration with Tullett Prebon Information (TPI).
The deal allows GDI the rights to use TPI’s high quality, independent over-the-counter derivatives data as part of its accurate and reliable index benchmarks.
GDI licenses its indices for the creation of futures contracts to group company Global Markets Exchange Group Limited (GMEX), which will launch a Multilateral Trading Facility later this year, subject to approval from the UK Financial Conduct Authority.
The initial launch will focus on the pioneering GMEX Constant Maturity Futures contracts for Interest Rate Swaps, which will be traded on its London Derivatives Exchange segment.
Designed to overcome the complications of hedging interest rates that have been associated with standard quarterly expiring futures contracts, these contracts are linked to the GDI developed proprietary Constant Maturity Index,which reflects the underlying IRS market in real-time.
“This is an important and exciting strategic alliance with one of the world’s leading inter-dealer brokers and its global information arm, which will help ensure the index benchmarks underpinning our innovative futures contracts have very high standards of data integrity,” says Hirander Misra, CEO of GMEX Group and chairman of GDI.
“Our indices are calculated from reliable IRS inputs and will consist of a diverse range of market participants, including TPI, banks, investment funds and market makers. Once the exchange launches, there will be index surveillance validation alongside GMEX market surveillance to help ensure benchmark quality,” says Vj Angelo, president of GMEX Group and CEO of GDI.
“Both competition and regulatory change are driving the need for data that can be trusted to stand the closest scrutiny, and our partnership with GMEX Group and its index division is testament to this increasing demand for high quality, independent data, which is essential for the creation of credible benchmarks that underpin global trading activity,” says Frank Desmond, managing director, Tullett Prebon Information.