Marex, a global
financial services platform, has announced its plans to introduce client
clearing services for interest rate swaps. The company is poised to become the
first non-bank Futures Commission Merchant (FCM) to offer this service through
LCH’s SwapClear, pending final approval.
Marex to Launch Client
Clearing for Interest Rate Swaps
Marex’s initiative
comes as a response to the growing demand from clients for increased
counterparty risk diversification, enhanced clearing capacity, and improved
market connectivity. By stepping in as a non-bank member, Marex aims
to fill a gap in the market and provide an alternative to traditional
bank-dominated clearing services.
The
introduction of Marex’s interest rate swap clearing service is expected to boost
liquidity, reduce counterparty risk concentration, and expand overall capacity.
According to the information e-mailed to Finance Magnates, the launch of
the new service is scheduled for July 15, 2024, subject to final regulatory
approval.
“Our entry
into interest rate swap clearing is a significant move given the size of this
market and complements our existing clearing offering,” said Thomas Texier,
Head of Clearing at Marex. “Recent consolidation in the interest rate swaps
clearing market has heightened the need for new players.”
The
decision comes at a time when Marex has strong financial foundations. According
to the report published for 2023 and Q1 2024, the company’s revenue
increased by 75% to $1.245 billion, while pretax profit jumped 44% to $141
million. The group recorded a 12% growth in revenue for the three months ended
March 2024 and a surge of 141% month-on-month in pretax profit.
Marex
offers an interest rate swap clearing service designed to work independently of any specific broker. Clients can integrate the service with their existing bank relationships, benefiting from Marex’s capabilities without needing to change their current trading
setup.
“Our
clients will be empowered to trade with greater confidence using Marex’s robust
balance sheet, comprehensive end-to-end offerings and our consistent delivery
on excellent client service.”
Marex Aims to Go Public in
the US
Marex Group
has also entered the race to go public in the United States by filing an
initial public offering (IPO) of ordinary shares with the Securities and
Commission (SEC).
This
strategic move follows the company’s decision to cancel a planned listing in
the United Kingdom back in 2021. Early signals of Marex’s intent to list
publicly in the US emerged in early December when it confidentially submitted a
preliminary registration statement to the SEC.
It places
Marex among many UK-based companies seeking to enter the US
public market. The IPO landscape in 2023 was largely dominated by Nasdaq, which
continues to attract the highest volume of public offerings in the Western
hemisphere. During the same period, public offerings in London saw a decline of
36%.
Marex also
recently enhanced its governance structure by appointing John W. Pietrowicz, a
former executive at CME Group, to its Board as an Audit & Compliance Committee member.
Marex, a global
financial services platform, has announced its plans to introduce client
clearing services for interest rate swaps. The company is poised to become the
first non-bank Futures Commission Merchant (FCM) to offer this service through
LCH’s SwapClear, pending final approval.
Marex to Launch Client
Clearing for Interest Rate Swaps
Marex’s initiative
comes as a response to the growing demand from clients for increased
counterparty risk diversification, enhanced clearing capacity, and improved
market connectivity. By stepping in as a non-bank member, Marex aims
to fill a gap in the market and provide an alternative to traditional
bank-dominated clearing services.
The
introduction of Marex’s interest rate swap clearing service is expected to boost
liquidity, reduce counterparty risk concentration, and expand overall capacity.
According to the information e-mailed to Finance Magnates, the launch of
the new service is scheduled for July 15, 2024, subject to final regulatory
approval.
“Our entry
into interest rate swap clearing is a significant move given the size of this
market and complements our existing clearing offering,” said Thomas Texier,
Head of Clearing at Marex. “Recent consolidation in the interest rate swaps
clearing market has heightened the need for new players.”
The
decision comes at a time when Marex has strong financial foundations. According
to the report published for 2023 and Q1 2024, the company’s revenue
increased by 75% to $1.245 billion, while pretax profit jumped 44% to $141
million. The group recorded a 12% growth in revenue for the three months ended
March 2024 and a surge of 141% month-on-month in pretax profit.
Marex
offers an interest rate swap clearing service designed to work independently of any specific broker. Clients can integrate the service with their existing bank relationships, benefiting from Marex’s capabilities without needing to change their current trading
setup.
“Our
clients will be empowered to trade with greater confidence using Marex’s robust
balance sheet, comprehensive end-to-end offerings and our consistent delivery
on excellent client service.”
Marex Aims to Go Public in
the US
Marex Group
has also entered the race to go public in the United States by filing an
initial public offering (IPO) of ordinary shares with the Securities and
Commission (SEC).
This
strategic move follows the company’s decision to cancel a planned listing in
the United Kingdom back in 2021. Early signals of Marex’s intent to list
publicly in the US emerged in early December when it confidentially submitted a
preliminary registration statement to the SEC.
It places
Marex among many UK-based companies seeking to enter the US
public market. The IPO landscape in 2023 was largely dominated by Nasdaq, which
continues to attract the highest volume of public offerings in the Western
hemisphere. During the same period, public offerings in London saw a decline of
36%.
Marex also
recently enhanced its governance structure by appointing John W. Pietrowicz, a
former executive at CME Group, to its Board as an Audit & Compliance Committee member.
