AN INTEGRATED TRADING AND CLEARING SOLUTION
Fenics Markets Xchange (“FMX”) combines the leading Fenics UST, Repo and FX platforms with our new FMX Futures Exchange. FMX will deliver an integrated trading solution, utilizing state-of-the-art Fenics trading technology and global infrastructure designed for speed and scalability. FMX Futures Exchange has partnered with LCH, a leading global clearing house holding the world’s largest Interest Rate Swap clearing pool.
Together, FMX will offer a fully electronic cash U.S. Treasury and futures platform while providing market participants significant clearing and cross margin efficiencies.
INNOVATIVE TRADING PROTOCOLS HELPING TO REDUCE TRANSACTION COSTS
Matching Engines
The matching engine for UST futures will be located at NY4, alongside the matching engine for Fenics UST (FUST) cash treasuries. This co-location will result in ultra-low latency when trading futures vs cash basis, and a significant reduction in the costs associated with legging risk.
Tighter Tick Sizes
Reduced tick sizes will allow for tighter bid/ask spreads:
– UST: 1/8 for 2-5’s 1/4 for 10’s 1/2 for 20-30’s
– SOFR: 1/4bp first 2 years 1/2bp years 3-5
EXCHANGE FEES
A simplified fee schedule will offer volume-based fee reductions with no membership requirements
MARGIN RELIEF
Portfolio margin analysis will provide for a significant Initial Margin offset on eligible portfolios of FMX futures contracts and LCH-cleared swaps