New Derivatives Exchange Targets Regulation
Global Markets Exchange Group International LLP (GMEX) just launched as a derivatives exchange after over a year of extensive planning by co-founder and CEO Hirander Misra, and President and Managing Director, Vj Angelo.
The London-based exchange group has been created to take advantage of market opportunities brought on by G20’s recommendations of international regulation related to OTC derivatives in developed markets and growth in emerging markets, according to a release.
G20 includes a group of finance ministers and central banks from twenty of the world’s leading economics. OTC derivative regulation by G20 also includes the enforcement of Basel III, a standard on how banks manage derivatives.
GMEX ‘s authorization to form a multilateral trading facility from UK Financial Conduct Authority is still pending.
To reduce cost for institutions on balance sheet and margining, GMEX has also launched technology, consulting, and index divisions. The products are planned to be less capital intensive.
“Our futures products mirror the underlying OTC markets but in a much more cost-effective manner, in terms of capital efficiency,” says Misra. “Since they are classified as futures products, they are much less margin intensive then OTC products.”
Misra adds that the products are due to be announced in the next month.
Prior to co-founding GMEX, Misra was the co-founder of Chi-X Europe exchange up until 2010. Angelo also has experience in fixed income OTC markets. James Davis was appointed COO, who is the former Head of Sales for Trayport at GFI group.
[Learn more about Misra's background:Hirander Misra Resigns from Algo Technologies]
Zarna Patel is a staff writer for InformationWeek's Financial Services brands, which include Bank Systems & Technology, Insurance & Technology and Wall Street & Technology. She received her B.A. in English and journalism from Rutgers University College of Arts and Sciences in ... View Full Bio