Last updated: April 2010

American Financial Exchange

 

 

 



 

 


  • The American Financial Exchange (AFX) is a self-regulated exchange that provides a transparent, centralized and rules-based electronic marketplace to allow for small & mid-sized American banks to meet their interbank funding needs.
  • Members include small & mid-sized banks and non-bank financial institutions such as broker-dealers, insurance companies, private equity firms, hedge funds, futures commission merchants (FCMs), asset managers and finance companies.
  • AFX offers a suite of innovative products that improve transparency and efficiency in the interbank loans marketplace and enable banks to manage their assets and liabilities more efficiently.
  • AFX also facilitates the determination of Ameribor (American Interbank Offered Rate) which is the daily volume-weighted average transaction rate. Ameribor is denoted as a 360-day annualized percentage rate to the fifth decimal.
  • In line with current regulatory objectives, AFX promotes transparency and a centralized market while minimizing systemic risk.

 AFX Markets

AFX provide the following categories of products:

  • AFX Unsecured Loan Market: a loan market where Members commit to lend and borrow short-term funds electronically based on standardized contract specifications.
  • AFX Secured Loan Market:a loan market where Members commit to lend and borrow short-term collateralized funds electronically based on standardized contract specifications.
  • AFX Deposit Market: a demand deposit market where Members commit to place demand deposits in banks electronically based on standardized contract specifications.

  AFX Mission

  • Establish interest rate benchmarks relevant to the unique needs of the small & mid-sized American banking sector.
  • Establish an organized, centralized, liquid marketplace to enable efficient “price discovery” of interbank lending rates while minimizing transaction costs.