MGEX (Exchange) announced its partnership with The Trend Exchange (TrendEx). MGEX will provide clearing services to TrendEx, which intends to offer risk management products based on domestic box office receipts. The alliance between MGEX and TrendEx marks the initial time the Exchange will provide clearing and settlement services to another entity. As a Derivatives Clearing Organization (DCO), MGEX will provide full clearing services including clearing all trades made on the TrendEx trading platform, counter party risk management of trades, and collect and maintain performance bonds for TrendEx contracts. Services provided will be in accordance with the rules and regulations of MGEX and its regulatory body, the Commodity Futures Trading Commission (CFTC). CFTC approval of the TrendEx application is pending.
“It is a wonderful opportunity for MGEX to be involved with providing risk management to another sector of our economy,” James D. Facente, Director of Market Operations, Clearing & IT, MGEX said. “Providing these services also allows MGEX to leverage our own internal assets while diversifying the business risks faced by our clearing members, members and market participants on a daily basis. We look forward to a prosperous relationship with TrendEx,” Facente said.
The Trend Exchange founder and CEO Robert S. Swagger said his company is pleased to be working with MGEX. “As a future provider of risk management services for the motion picture industry, we were looking for a valuable partner to provide the essential services of clearing and settling trades. We found that partner in MGEX and look forward to continuing our implementation with them,” Swagger said.
“The MGEX Clearing House has been providing quality clearing services for over a century,” Mark G. Bagan, CEO, MGEX said. “We are pleased to have partnered with TrendEx and to play a role in bringing their innovative risk management products to market. As MGEX continues to explore ways to expand our business, we look forward to forging new partnerships with entities in need of the services our Exchange can offer the marketplace,” Bagan said.