CME Group, the world's leading and most diverse derivatives marketplace, announced today it has received approval from the United Kingdom's Financial Conduct Authority (FCA) for a London-based derivatives exchange.
CME Europe Ltd will be a Recognised Investment Exchange and will launch on 27 April. The exchange has received approval to list its first commodity products, and as previously announced plans to launch a full suite of FX futures products on the same date, subject to final regulatory approval of certain operational clearing conditions. The initial commodity products to be listed on the exchange include biodiesel, which have previously been cleared as swaps on CME Clearing Europe.
"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," said CME Group Executive Chairman and President Terry Duffy. "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."
"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," said William Knottenbelt, Senior Managing Director, EMEA (Europe, Middle East, Africa) for CME Group. "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."