Marex enables first portfolio-margining for FMX Futures

LCH said on Monday it had started portfolio margining between FMX Futures and its own SwapClear service, adding a client had started using the service without identifying the firm.

London-based Marex said the first portfolio margining took place on Monday September 22.

Terry Hollingsworth, global head of Futures and OTC Clearing Sales at Marex, said on Wednesday: “The launch of margining benefits between LCH and FMX marks a significant step in bringing greater diversification to the US Treasury futures market.

“With this service, LCH, FMX and Marex are not only delivering capital savings to clients but building a stronger and more resilient futures market. Initiatives like this reinforce our commitment to driving market innovation, and we are proud to be the first clearing firm to provide our clients with access to this service,” Hollingsworth added.

The launch of the portfolio margining service is important for BGC Group-owned FMX Futures as the savings derived from portfolio-margining are a key differentiator of the new futures trading venue.

FMX Futures launched in September last year designed to slash the cost of trading US Treasury futures by enabling margin offsets between futures and the US Treasury swaps already cleared through LCH SwapClear.

Nick Rustad, group head of LCH SwapClear and Listed Rates, said: “We are pleased to have supported Marex on a number of firsts over the last year including as the first non-bank Futures Commission Merchant (FCM) to onboard to the Listed Rates service. We look forward to our continued collaboration as we bring greater operational and margin efficiencies to Marex and its clients through our clearing services.”

Marex said this is the latest first for the firm and FMX after the clearing broker cleared the first trade on FMX in September 2024 and completed the first US Treasury futures delivery last month.

FMX Futures went live with three-month Secured Overnight Financing Rate (SOFR) futures in September last year. Volumes in the SOFR contract have been climbing, with August hitting a monthly record of 239,618 contracts, according to FOW Data, which was 61% higher than the previous month.

New York-based FMX this month added US broking giant StoneX to its roster of FCMs, marking the tenth addition since launch.

Presenting BGC results in July, co-chief executive John Abularrage said FMX Futures would likely have 12 FCMs connected by the end of this year, allowing the venue to begin scaling liquidity.

FMX Futures is seeking to challenge the dominance in US Treasury derivatives of Chicago's CME Group.

Separately, Marex signed late on Tuesday an agreement with digital assets prime broker FalconX to provide both firms' clients with access to crypto futures traded on CME Group and various crypto-native platforms.