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 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.
- 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.