Deutsche Börse supports market innovation by acquiring a stake in GMEX Group

Deutsche Börse AG today announced the purchase of  a minority stake in Global Markets Exchange Group International LLP (“GMEX Group”). The company paid a single digit million GBP sum for the stake. GMEX Group is a London based exchange business focused on the launch of a suite of new products, including original Interest Rate Swap Futures contracts, derivatives indices and emerging markets exchange business partnerships enabled by multi-asset trading technology.

With this step, Deutsche Börse is supporting innovation in new product concepts, some of which will enable institutions to reduce costs to both balance sheet and margining.

“This investment in GMEX Group highlights our focus on using innovation to support the integrity and safety of the financial markets. The innovative business model provided by GMEX Group is the type of initiative the end users of the market want to see supported to achieve this objective. Further, this extends our positioning in new products, including unique Interest Rate Swap futures contracts and the development of new market exchange segments, for a broad range of market participants in existing and emerging markets.” said Andreas Preuss, Deputy CEO of Deutsche Börse Group and CEO of Eurex.

“We are immensely pleased with this investment from such a strategically important global exchange partner and view this as a clear endorsement of our vision and business model, whilst maintaining our independence. We look forward to the broad input from Deutsche Börse Group, which can only serve to refine and improve the direction of our new exchange, to the benefit of financial derivatives traders and end users across the world. The global regulatory landscape is evolving quickly and we intend to establish GMEX Group as one of the most agile and capable providers in the space.” said Hirander Misra, CEO of GMEX Group.

About Deutsche Börse

Deutsche Börse Group is one of the world’s leading service providers for the securities industry with a product and service offering for issuers, investors, intermediaries and data vendors. The Group covers the entire process chain from trading, through clearing, to settlement and securities custody. Furthermore, Deutsche Börse offers market data, indices and analyses and is a service provider for the development and operation of IT systems.

About GMEX Group The GMEX Group launched the exchange consulting, technology and index divisions in August this year, with authorisation pending from the UK Financial Conduct Authority (”FCA”) to operate Global Markets Exchange Group Limited (”GMEX”), a wholly-owned subsidiary, as a Multilateral Trading Facility (“MTF”). This will facilitate the launch of its Constant Maturity Futures (“CMF”) contract, which has been designed to address the complications for hedging interest rates that have been associated with the standard quarterly (March, June, Sept, Dec) expiring futures contracts.

Global Markets Exchange Group International LLP is a group of companies which offer ethical, sustainable and innovative solutions for the new age of global financial markets, encompassing:

- Creation and operation of low cost electronic exchanges in equities, debt, FX, derivatives and commodities in developing and, in a targeted way, developed markets

- Development of related new tradable market and product indices

- Interconnectivity of exchanges to each other and to the GMEX London based MTF creating a global network of liquidity

- Trading of partner exchange products on GMEX in London and relevant GMEX products on the partner exchange based on a revenue share model

- Business development to enhance liquidity in partner exchange products

- Consultancy on exchange strategy, product development, clearing and regulation

- Provision of platform technology