About EP3Case Studies

IMX: The Intelligent Medicine Exchange

IMX and EP3®: Transforming Healthcare Risk Management in a Multi-Billion Dollar Industry

The Client

The Intelligent Medicine Exchange (IMX) is the first-ever derivatives marketplace centered on the healthcare sector, founded in 2021. With healthcare making up nearly 20% of the U.S. GDP, there had been no dedicated derivatives market specifically addressing healthcare risk management—until IMX. IMX’s goal is to establish a transparent, two-sided marketplace that facilitates pricing healthcare assets and hedging risk for various market participants, including payers and providers. Ultimately, IMX aims to reduce healthcare costs and premiums by fostering marketplace competition.

The Challenge

IMX faced a range of critical needs in establishing a CFTC-regulated futures exchange. The exchange required a reliable technology partner with both a legacy of success and the ability to meet stringent regulatory standards. Time was of the essence for IMX, necessitating rapid deployment, and they needed a highly experienced technical team with a track record in handling complex integrations. For these reasons, IMX chose Connamara Technologies’ EP3® matching engine and exchange platform as their foundation.

The Solution

Connamara Technologies implemented its EP3 exchange platform, equipped with essential regulatory reporting features and seamless API integrations. Key integrations included:

  • CQG: As a leading provider of futures trading applications, CQG integration allowed brokers and their clients a smooth onboarding experience within the IMX platform.
  • Eventus: Integrated to provide essential trade practice surveillance, meeting regulated exchange standards.

Solution Steps:

  • Discovery: Conducted over several weeks to pinpoint any functionality gaps for IMX’s specific requirements.
  • Implementation: The EP3 platform was deployed on IMX’s cloud infrastructure, with Connamara providing comprehensive support and training as IMX staffed up to manage exchange operations.
  • Soft Launch: Initial platform deployment occurred in June 2022, with the first regulatory demonstration completed in December 2022.

The Results

IMX achieved regulatory licensing as a Designated Contract Market (DCM) in January 2024. The exchange was also named a finalist in the 2024 FIA Innovator of the Year competition and was recognized at the FIA Futures and Options Expo in Chicago.