London, New York, Chicago 11 October 2018. Demand Derivatives Corp., a creator of novel derivative instruments, and GMEX Group (GMEX), a leading provider of exchange and post-trade business technology solutions, will combine forces to launch a U.S.-regulated futures exchange, RealDemand Board of Trade (“RealBOT”), and clearing house, RealDemand Clearing (“RealClear”). To further align interests and share in the success of the project, GMEX will take a minority equity stake in Demand Derivatives.
Slated to open in 2019, subject to CFTC and SEC approval, RealBOT and RealClear will create unique and complete solutions to 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. Four novel and proprietary instrument designs, cutting-edge technology, and blockchain clearing are expected to leapfrog existing processes. The four transformative instruments include:
- RealLimit™ Futures — Limited-risk futures contracts (cap a maximum loss)
- RealVol® Instruments — Realized-volatility futures and futures options (trade risk itself)
- RealDay™ Options — Forward-start daily futures options (hedge event risks inexpensively)
- RealGlobe™ Products — Global index products (cut costs and control index risk effectively)
While the four instruments can be utilized 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, 10-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, live in multiple exchanges across the globe, will power the trading platform to deliver a number of key solution components including: the ForumMatch™ centralized Matching Engine, Exchange Administration, Market Data Distribution, FIX API Gateway, Risk Management, and Reporting and Position Management, combined with innovative blockchain technology.
Robert Krause, Chairman and CEO of Demand Derivatives Corp., commented, “The low latency and cutting-edge technology offered by GMEX make them the perfect partner to advance our goal to bring profound change to the futures industry.”
Hirander Misra, Chairman of GMEX Technologies and CEO of GMEX Group, stated, “We are delighted and excited that Demand Derivatives has chosen to partner with GMEX to enable their vision to deliver a new generation of regulated futures exchanges.” Mr. Misra added, “Their derivative instrument designs have the potential to substantially reduce risk and dramatically cut costs to market participants.”
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For GMEX Group:
Melanie Budden, The Realization Group
+44 (0)7974 937 970
For Demand Derivatives Corp:
Donald Schlesinger — President
About Demand Derivatives Corp.
Demand Derivatives Corp. is the holding company for the forthcoming innovative futures exchange RealBOT™ and its dedicated clearing house RealClear™. The company’s four unique instrument designs and pioneering blockchain technology will pose a significant competitive challenge to the legacy systems’ deep-rooted wasteful methods, “unlimited” risk instruments, high transaction costs, and inefficient products of existing exchanges and clearing houses.
About GMEX Group
GMEX Group (GMEX) comprises a set of companies that offer leading-edge innovative solutions for a new era of global financial markets, providing business expertise, the latest technology, connectivity, and operational excellence delivered through an aligned partnership driven approach. GMEX uses extensive market infrastructure experience and expertise to create an appropriate strategic master plan with exchanges, clearing houses, depositories, registries, and warehouse receipt platforms. GMEX also offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity. GMEX Technologies is a wholly owned subsidiary of GMEX Group.