GFI Group Brokers Swap on Nymex
NEW YORK, August 22 /PRNewswire-FirstCall/ — GFI Group, Inc (Nasdaq: GFIG) has brokered the first catastrophe risk trade on the New York Mercantile Exchange, Inc., (NYMEX). The counterparties were Swiss Re, a global reinsurer, and Ascendant, a Bermudian reinsurance company. The trade was an option on the nationwide catastrophe risk futures contract.
Catastrophe derivatives enable tailored trading and hedging of combinations of risks. The trade was based on the Re-Ex Index – an index calculated by Gallagher Re, a reinsurance intermediary and advisory firm, and which includes all natural catastrophes apart from earthquake and terrorism.
Albert Selius, head of the insurance-linked securities trading desk at Swiss Re Capital Markets said, “We are always looking to trade cat risk in the best format. We welcome the NYMEX initiative as it provides an alternative platform for natural catastrophe trading in addition to the traditional industry loss warranties market.”
Rick Pagnani, president and CEO at Ascendant said, “We are happy to have participated in the inaugural trade, but, more importantly, we are excited at the prospects for this market. These cat derivative contracts add a new dimension to risk management and give (re)insurers and capital market participants alike with a new way to enhance risk-adjusted returns.”
“GFI has a record of helping new derivatives markets develop and we are proud to have brokered this first trade on Nymex” said Ian Clague, GFI’s head of commodity broking for the Americas. “We are seeing financial institutions starting to trade and manage reinsurance and derivatives are making this more standardised and accessible.”
NYMEX chairman Richard Schaeffer said, “NYMEX is excited to develop innovative risk management tools, such as the catastrophe risk options contract. This contract introduces a new industry to the price mitigation services NYMEX provides and serves as a complement to its existing product slate.”
About GFI Group Inc. http://www.GFIgroup.com Group Inc. (http://www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.
Headquartered in New York, GFI was founded in 1987 and employs more than 1,500 people with additional offices in London, Paris, Hong Kong, Tokyo, Singapore, Sydney, Seoul, Cape Town, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 2,000 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI(TM), Starsupply(R), GFInet(R), CreditMatch(R), FENICS(R) and Amerex(R).
Certain matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “might,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: economic, political and market factors affecting trading volumes; securities prices or demand for the Company’s brokerage services; competition from current and new competitors; the Company’s ability to attract and retain key personnel, including highly-qualified brokerage personnel; the Company’s ability to identify and develop new products and markets; changes in laws and regulations governing the Company’s business and operations or permissible activities; the Company’s ability to manage its international operations; financial difficulties experienced by the Company’s customers or key participants in the markets in which the Company focuses its brokerage services; the Company’s ability to keep up with technological changes; and uncertainties relating to litigation. Further information about factors that could affect the Company’s financial and other results is included in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE GFI Group Inc
CONTACT: Contact: Alan Bright, PR Manager, GFI Group Inc.,