Montreal Exchange Inc. (MX) is celebrating the 25th anniversary of the launch of its signature product, the Three-Month Canadian Bankers’ Acceptance Futures contract (BAX).

“The introduction of the BAX in April, 1988, represented a new vision for MX and ultimately ushered in the modern era of derivatives for Montreal and for Canada,” says Alain Miquelon, president and CEO, MX and group head of derivatives, TMX Group Ltd. (TSX:X). MX is a subsidiary of TMX.

Thomas Kloet, CEO, TMX Group, added, “We are proud to support this important product across the world and we are pleased with the growth in global interest in the BAX since the formation of TMX Group in 2008.”

In the early years, BAX volumes were modest as the financial futures market evolved in Canada. In the 1990s, trading in the BAX grew rapidly, and it was recognized as Canada’s benchmark product for short-term interest rates.

The BAX has now grown to serve a key function in Canadian money markets and last year it ranked sixth globally in terms of volume among short-term interest rate futures contracts.

BAX average daily volume through April 30, was 85,570 contracts, representing a notional amount traded of approximately $86 billion daily or 6.5x the total money market trading activity in Canada. This represents a compound annual growth rate in volumes of 13% in the last 10 years since 2003.