More banks licensed to trade Hong Kong property derivatives

Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley added

London, September 12, 2007 – GFI Colliers, a joint venture between GFI Group Inc. (GFIG on Nasdaq) and Colliers International, today announced that Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley are now licensed to trade residential property derivatives based on The University of Hong Kong Real Estate Index Series (HKU-REIS). These banks join Sun Hung Kai Financial and ABN Amro, counterparties of the first Hong Kong property derivatives swap in February this year.

Connie Choi, Goldman Sachs’ Hong Kong based executive director, fixed income, currency and commodities said “Following the success of property derivatives in Europe, the HKU-REIS enables Asia investors a new way to gain liquid exposure to real estate.”

Andrew Chan, vice president for property derivatives trading at Merrill Lynch in Hong Kong, said, “Hong Kong is one of the forerunners in the property derivatives market in Asia, which is integral to an eventual global platform for better managing real estate investments and risks.”

Professor KW Chau, chair of real estate and construction at the University of Hong Kong said, “The HKU-REIS is the most transparent, reliable and timely set of real estate price indices in Hong Kong.  We constructed the indices with derivatives trading very much in mind and we are gratified to see their growing acceptance for exactly this ? as well as becoming the benchmark for measuring the performance of Hong Kong real estate.”

“Property derivatives are slowly emerging in Asia Pacific” said Stephen Moore, head of property derivatives at GFI Colliers. “They offer a great way to both hedge property risk and gain exposure to sectors where perhaps hard assets are not available. Reliable indices are key to successful derivatives markets. We are delighted that these major banks recognise the quality of the HKU-REIS as a basis for property derivatives, and have shown their support by completing license agreements”.

The HKU-REIS is a series of monthly real estate price indices that track the change in price of residential properties.  The index series is based on transactions registered with Hong Kong’s Land Registry and currently comprises four indices. The HKU-ARPI covers the whole Hong Kong Special Administrative Region and is a value-weighted average of three sub-indices: Hong Kong Island (HKU-HRPI), Kowloon (HKU-KRPI) and the New Territories (HKU-NRPI).

About GFI Group Inc.

GFI Group Inc. ( 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, Seoul, Tokyo, Singapore, Sydney, 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™, Starsupply®, GFInet®, CreditMatch®, FENICS® and Amerex®.

Forward-looking statement

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Alan Bright
PR Manager
GFI Group Inc.
+ 44 (0)20 7877 8049