Bank of America Merill Lynch will be a participant of the Global Markets Exchange Group (GMEX) when it opens for trading tomorrow.
Merrill Lynch will be offering execution and clearing services for its clients using GMEX products. The initial products offered include GMEX’s interest rate swap constant maturity futures contracts (IRS CMF), a derivative closer to an over-the-counter (OTC) product. It is backed by the German derivatives exchange, Eurex.
The IRS CMF is designed to deliver the efficiencies of centralised order execution and aims to hedge out interest rate exposure.
The banking group will provide clearing, execution and settlement services for the contract in much the same way it does for its other Eurex derivative products.
Brooke Stephens, managing director, European head of futures and options, OTC clearing and foreign exchange prime brokerage at the bank says the contract provides additional choice to clients that are looking for alternatives to standardised exchange-traded derivatives and OTC products.
GMEX is pleased to have Merrill Lynch on board as it believes the bank can distribute its products to a wider range of clients and hopes to expand this further.
“We continue to build momentum for our launch and look forward to bringing our IRS CMF to a wide range of buy side firms, banks and futures trading houses,” says Hirander Misra, chief executive officer and co-founder of GMEX.
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