CME, the world's largest and most diverse derivatives exchange, announced today that the United Kingdom's Financial Services Authority (FSA) has granted CME the status of a Recognised Overseas Clearing House (ROCH), which enables CME to provide global clearing services to market participants in the UK and serve a wider range of UK customers' risk management needs.
The ROCH status will take effect immediately and will enable CME to clear products that are not traded on centralized markets provided by CME in the United States. For example, CME will now be able to clear over-the-counter products regulated by the FSA, such as currency forwards, that may be or will soon be offered by FXMarketSpace, CME's joint venture with Reuters. CME also will have the ability to market its other over-the-counter clearing services in the UK, including its CME Clearing360 offering.
"We are pleased to be designated a Recognised Overseas Clearing House in the UK, further expanding our global clearing capabilities to OTC markets," said Kim Taylor, Managing Director and President, CME Clearing. "Today's announcement is a great example of how end users of financial markets can benefit when regulators such as the FSA and CFTC create a regulatory environment where principles-based regulation and information sharing arrangements are recognised. With our Clearing360 initiative, FXMarketSpace joint venture and Swapstream subsidiary, CME will continue to extend the benefits of central counterparty clearing to market participants trading over-the-counter."
CME received the status of a Recognised Overseas Investment Exchange in 1989.