The European firm is trying to establish a new approach to hedging interest rate risk
The Global Markets Exchange Group is targeting an
October launch and has hailed the results of a study conducted
by University College London as proof of the benefits of its
Gmex, the new European exchange group, is planning to
launch a constant maturity future (CMF), a futures contract
designed to replicate the economics of a plain vanilla interest
rate swap, on its new trading venue later this year.
The Gmex Interest Rate Swap Index Average will
initially be offered in four currencies with each currency
series available for every annual maturity from 2 to 30
The innovative structure will offer futures contracts
benchmarked against the Gmex IRSIA, a proprietary index which
tracks the underlying swap market.
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