Chicago – May 2, 2023 – The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, today announced that the exchange has appointed veteran financial services executive John Shay as CEO, effective immediately.
AFX recently announced that 100% of the company was acquired by 7RIDGE, a specialized growth equity firm invested in transformative technologies for financial services.
Shay has decades of experience in leadership roles at some of the world’s leading financial institutions and as an advisor to U.S. regulators governing the financial industry. Under 7RIDGE’s ownership and Shay’s leadership, the exchange will accelerate its growth trajectory, expanding the network of members and furthering adoption of the AMERIBOR® benchmark created by AFX. AMERIBOR is the only credit-sensitive interest rate index based on real activity that takes place on a transparent market.
Shay said: “I’m thrilled to take the helm of AFX at a time that is truly fortuitous for bringing significant value to this vital sector of the economy. The health and safety of regional and local banks – and their continued ability to source deposits, lend, borrow and manage their risk – are critical to ensuring that the small businesses driving the U.S. economy can thrive. At the same time, AMERIBOR will provide instrumental hedging opportunities, particularly as the world adapts to the retirement of Libor in June and as we introduce new products. I’m looking forward to collaborating with the outstanding AFX team which has established strong equity in relationships with our members and a loyal following.”
Dr. Richard L. Sandor, Founder and Chairman Emeritus of AFX, will continue to serve in an advisory capacity to the exchange.
Reed Whitman, Treasurer of Brookline Bancorp and member of AFX, said: “We are a founding member and enthusiastic supporter of AFX and the valuable contributions it makes to regional banks in the U.S. The purchase by 7RIDGE and John Shay’s seasoned leadership will help drive the exchange’s ambitious agenda for growth and more offerings while continuing to provide the market with both a funding platform and the AMERIBOR benchmark rate which reflects regional banks’ true cost of funds.”
Shay has a record of building leading industry consortium-based firms – composed of and serving major buy-side, sell-side and exchange participants – along with extensive experience in banking and deposits, over-the-counter (OTC) and exchange-traded derivatives markets, clearing and brokerage.
Shay founded and served as Managing Partner of Capital Market Services Inc., (CMSI), a clearing and execution services business designed to improve market access for non-bank participants in the OTC and exchange-traded space. He was Chairman of Acadia (formerly AcadiaSoft), a leading industry provider of post-trade services and financial market infrastructure for the non-cleared derivatives community, from 2019 until it was acquired last month by the London Stock Exchange Group (LSEG).
Since 2007, he has been part of leading global market making firm Virtu Financial, most recently as Senior Advisor to the CEO. He co-founded IDCG, the market’s first OTC interest rate Designated Clearing Organization (DCO), sold in 2012 to the London Clearing House (LCH) and then LSEG.
Shay’s experience has also included serving as Global Head of Fixed Income and Commodities at Nasdaq, Executive Chairman at TruSight Solutions LLC and Senior Advisor at Broadway Technology following a 25-year career at ICAP, a major voice and electronic broker in the OTC space.
Shay also served on the U.S. Treasury Borrowing Advisory Committee (TBAC) and as a Board member of LCH (now part of LSEG).
About American Financial Exchange
The American Financial Exchange (AFX), launched in 2015, is a self-regulated exchange with over 240 bank and non-bank members across the United States. AFX offers a suite of innovative products to improve transparency and efficiency in the interbank loans marketplace. AFX also facilitates the determination of a market-based interest rate benchmark called the American Interbank Offered Rate (AMERIBOR®). AMERIBOR is an interest rate benchmark that reflects the actual unsecured borrowing costs of more than 1,000 American banks and financial institutions, that together represent 25% of the U.S. banking sector’s total assets. For more information about AFX or AMERIBOR, visit www.ameribor.net.
Source: AFX
