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American Financial Exchange Will File With The Commodity Futures Trading Commission (CFTC) To Become A Designated Contract Market (DCM)

Date 10/10/2019

American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American financial institutions, announced today it will file to become a designated contract market (DCM) with the Commodities Futures Trading Commission (CFTC) under the name AMERIBOR Benchmark Futures Exchange™ (ABFX™). DCMs are futures exchanges that operate under the regulatory oversight of the CFTC, pursuant to the Commodity Exchange Act (CEA).

AFX facilitates the determination of AMERIBOR®, a transaction-based interest rate benchmark for financial institutions via its electronic trading platform. The rate is calculated as the weighted average daily volume in the AFX overnight unsecured loan market. The rate is denoted as a 360- day annualized percentage rate up to the fifth decimal.

“Becoming a DCM is the next natural step in the development of the AMERIBOR benchmark and AMERIBOR benchmark futures. It is a move in the best interest of our current and future users of AMERIBOR futures,” said Dr. Richard L. Sandor, chairman and CEO of AFX. “With continued growth in membership and trading volume, the AMERIBOR benchmark rate is now an integral part of the conversation regarding transition to alternative benchmarks.”

AFX has transacted more than $600 billion cumulatively since it opened in December 2015. AFX has 163 members across the U.S., which includes 133 banks and approximately 1000 correspondent banks. In addition, membership includes 30 non-banks, which is comprised of broker-dealers, private equity firms, business development corporations, hedge funds, futures commission merchants, insurance companies, asset managers and finance companies. Current active AFX markets are overnight, thirty-day, and three-month unsecured loans; and 7-day secured loans.