Marex Group has become the first firm to provide clients access to margin benefits through a clearing partnership between LCH Ltd and FMX Futures Exchange. The firm enabled the first client to use the service on Monday, 22nd September.

The service is going to reduce counterparty risk and deliver significant capital savings to clients with portfolio margining across futures positions held on FMX Futures Exchange and interest rate swaps (IRS) portfolios on LCH via LCH’s fully automated Portfolio Margining service. By allowing margin offsets across these products, clients can optimize their capital usage while maintaining robust risk management.

Marex Pioneers Margin Innovation Between LCH and FMX Futures

Marex has a strong track record of pioneering initiatives with LCH Ltd, a fully approved CFTC Derivatives Clearing Organization and one of the world’s largest clearing houses for interest rate swaps. In July 2024, Marex became the first non-bank firm to offer client clearing of IRS on LCH, a move that deepened liquidity, diversified counterparty risk, and expanded capacity in the IRS market.

FMX Futures Exchange, part of the broader FMX offering, launched SOFR futures in September 2024 and added two-year and five-year UST futures contracts in May. FMX’s platform also includes a US interest rate futures exchange, spot foreign exchange platform, and US cash treasuries platform. Marex has supported FMX’s growth as one of its largest clearing members since the platform’s launch, clearing the first-ever trade in September 2024 and the first UST delivery earlier this month.

Terry Hollingsworth, Global Head of Futures & OTC Clearing Sales at Marex, said: “The launch of margining benefits between LCH and FMX marks a significant step in bringing greater diversification to the US Treasury futures market. With this service, LCH, FMX, and Marex are delivering capital savings to clients while building a stronger and more resilient market.”

Nick Rustad, Group Head of LCH SwapClear and Listed Rates, added: “We are pleased to have supported Marex on a number of firsts over the last year, including onboarding as the first non-bank FCM to our Listed Rates service. We look forward to continued collaboration, bringing greater operational and margin efficiencies to Marex and its clients.”

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