FMX Futures Exchange, part of BGC Group Inc, has launched trading in US Treasury futures, marking a significant expansion of the platform’s product suite and aiming to disrupt one of the most heavily traded segments of the global fixed income market.
Backed by ten of the world’s largest investment banks and market-making firms, FMX debuted its new two-year and five-year Treasury futures contracts at 9:00 pm ET on Sunday, 18 May, for trading on Monday, May 19. The move follows the successful rollout of SOFR futures on the exchange in September 2024.
The launch positions FMX as a growing alternative to legacy futures exchanges, as it seeks to capture institutional flows in US rates trading and offer clients operational and capital efficiencies through its clearing arrangement with LCH Limited. According to a press release, LCH, a major global clearinghouse and CFTC-approved Derivatives Clearing Organization, is expected to deliver capital savings to FMX clients, particularly in the context of cross-margining with interest rate swaps.
FMX Futures Exchange is housed under FMX Holdings, LLC, which also operates the fastest-growing cash US Treasuries platform and a rapidly scaling spot FX trading venue. The launch of Treasury futures further integrates FMX’s offerings across the interest rate complex, targeting a broader institutional user base and aiming to drive liquidity away from more established players.
The move is likely to catch the attention of hedge funds and proprietary trading firms, as competition intensifies across futures venues.
