.jpg)
The American Financial Exchange (AFX), a centralized, electronic, self- regulated exchange for direct interbank lending and borrowing for American financial institutions, announced a record volume milestone, reaching $502 billion transacted since its inception in 2015.
AFX volume has nearly doubled from levels reached at the end of 2018 when $275 billion were traded since opening on December 11, 2015, and volume has tripled from the end of 2017 to the end of 2018. Membership levels have also reached new highs, jumping from 114 members at the end of 2018 to 153 members year-to-date.
“We are pleased to witness exponential growth in volume and membership participation. This is a testament to the service we provide to mid-sized and regional banks and companies across the U.S.,” said AFX Chairman and CEO Richard Sandor. “By using the AMERIBOR benchmark to price their loans, banks are able to more efficiently serve their customers.”
The AFX also announced the launch date for the AMERIBOR Futures contract scheduled for August 16, 2019. U.S. banks and other financial institutions may use AMERIBOR futures in connection with hedging variable overnight funding costs and interest rate risk. Proprietary traders may use AMERIBOR futures as a vehicle for implementing trading strategies related to interest rates and in connection with hedging interest rate risk.
“As our volume and membership numbers continue to gain momentum and reach critical mass, the launch of AMERIBOR futures is the natural next step that will provide market participants with the tools they need to manage their risk and seek trading opportunities,” Sandor said.
Currently the AFX has 153 members across the U.S. that includes 126 banks, approximately 1000 correspondent banks and 27 non-banks, comprised of broker-dealers, private equity firms, business development corporations, hedge funds, futures commission merchants, insurance companies, asset managers and finance companies. For more information about AFX or AMERIBOR, visit www.ameribor.net.
