CME Group Receives Regulatory Approval for European Exchange Launch

On Tuesday, CME Group announced it has received approval from the?United Kingdom’s?Financial Conduct Authority (FCA) for its London-based derivatives exchange, CME Europe Ltd. This?will be a Recognized Investment Exchange and it will launch on April 27.

In addition, the exchange has received approval to list its first commodity products. It had also previously announced plans to launch a full suite of FX futures products on the same date; this is subject to final regulatory approval. Initial commodity products to be listed on the exchange will include biodiesel, which has previously been cleared as swaps on CME Clearing Europe.

CME Group Executive Chairman and President Terry Duffy said in a press release, “Our European customers are increasingly looking for ways to manage risk and access liquidity in a local jurisdiction. CME Europe now allows us to better serve our customers in the region as we expand our business with relevant products. In addition, the combined move to central clearing and?London?serving as the center of global foreign exchange trading will mean our new exchange is well positioned to serve all of?Europe.”

William Knottenbelt, Senior Managing Director, EMEA (Europe,?Middle East,?Africa) for CME Group, added,?”Our global growth strategy continues to be focused on organic growth. The launch of clearing for over the counter interest rate swaps through CME Clearing Europe last year, our new European Trade Repository this year and now the upcoming launch of CME Europe further develop our international strategy. Opening in?London will mean we can further expand our new product offerings within?Europe?in addition to extend our footprint within the growing?Asia Pacific?region.”

Clearing services for CME Europe will be provided by?CME Clearing Europe.?