Demand Derivatives teams up with GMEX for new exchange and clearing house
Demand Derivatives and GMEX Group have combined forces to launch a US-regulated futures exchange called RealDemand Board of Trade (RealBOT), and clearing house, RealDemand Clearing (RealClear).
Alongside this team effort, GMEX will take a minority equity stake in Demand Derivatives.
Scheduled to open in 2019, subject to CFTC and SEC approval, RealBOT and RealClear aim to create solutions to address problems currently affecting the futures industry.
Specifically, the exchange’s products will seek to eliminate systemic risk, clear almost instantly, significantly reduce transaction costs, lower fees, and provide a new set of risk-mitigation features to market participants.
This comes with four instruments expected to enhance existing processes: RealLimit Futures, RealVol Instruments, RealDay Options, RealGlobe Products.
While the four instruments can be utilised on most underlying assets, the highest volume asset in each of the major asset classes is scheduled at launch: corn in commodities, gold in metals, crude oil in energy, ten-year treasury notes in rates, euro/dollar in foreign exchange, and a yet to be named index in equities.
Instruments on other underlying assets may be added in the future depending on market demand.
GMEX Fusion will power the trading platform with a host of solutions, including the ForumMatch centralised matching engine, exchange administration, market data distribution, FIX API gateway, risk management, and reporting and position management, as well as blockchain tech.