Global brokerage and financial technology company BGC Group, Inc. (NASDAQ:BGC) has announced that its FMX Futures Exchange received Commodity Futures Trading Commission (CFTC) approval to operate an exchange for U.S. Treasury and SOFR futures.

Howard W. Lutnick, Chairman and CEO of BGC Group, said:

“With this CFTC approval, we will combine our leading Fenics UST cash Treasury platform with our FMX Futures Exchange to deliver competition across the CME’s U.S. interest rate complex. For the first time, the most valuable futures market in the world will have real competition.”

Similar to U.S. interest rate futures, the wholesale U.S. Treasury market had historically been dominated by the CME until we launched Fenics UST. Since our launch, Fenics UST has grown rapidly, reaching 25 percent market share during the third quarter of 2023, up from 18 percent only a year ago. We will execute the same playbook with our FMX Futures Exchange.”

FMX’s clearing agreement with LCH SwapClear, one of the largest holders of interest rate collateral in the world, uniquely positions FMX to compete and reshape the U.S. interest rate market.

Robert Allen, President of FMX Futures Exchange, added:

“FMX’s global connectivity and vast distribution, combined with LCH’s highly efficient cross-margin benefits will challenge CME’s most valuable vertical, its U.S. interest rate complex. FMX is the first and only exchange to launch with all the tools necessary to compete and grow in the world’s most important market.”