Demand Derivatives, a creator of novel derivative instruments, and GMEX Group, a provider of exchange and post-trade technology solutions, are partnering to produce a US regulated futures exchange, RealDemand Board of Trade (RealBOT), and clearing house, RealDemand Clearing (RealClear). The partnership includes GMEX taking a minority equity stake in Demand Derivatives.
RealBOT and RealClear are due to open in 2019, subject to CFTC and SEC approval, and are designed 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; RealVol Instruments, realised-volatility futures and futures options; RealDay Options, forward-start daily futures options; and RealGlobe Products, global index products.
GMEX Fusion, which is live in many exchanges across the globe, will power the trading platform and deliver components including the ForumMatch centralised matching engine, exchange administration, market data distribution, a FIX API gateway, risk management, and reporting and position management combined with blockchain technology.
Hirander Misra, chairman of GMEX Technologies and CEO of GMEX Group, says: “We are delighted Demand Derivatives has chosen to partner with GMEX to enable its vision of delivering a new generation of regulated futures exchanges. The company’s derivative instrument designs have the potential to substantially reduce risk and dramatically cut costs for market participants.”