SINGAPORE: CME Group, the world’s leading and most diverse derivatives marketplace, announced today it is in the process of applying to the United Kingdom’s Financial Services Authority to create a London-based derivatives exchange.
Pending regulatory approval as a Recognised Investment Exchange, CME Europe Ltd will initially begin trading foreign exchange futures products.
It is expected to be launched in mid-2013.
CME Group executive chairman and president Terry Duffy said: “We continue to see an increase in business coming from our diverse set of customers in Europe, with more than 20% of our volume now originating from the region.
“Having an exchange in London that can leverage the central counterparty model of CME Clearing Europe will allow us to align ourselves even more closely with our regional customers in both listed futures and over-the-counter markets, and provide additional opportunities to our expanding non-US customer base,” he said in a statement.
CME Group CEO Phupinder Gill said: “Our application to establish an exchange in Europe fits within our strategy to grow organically and is an important next step to meet the growing regional demand from our customers.”
“Launching with a suite of FX products allows us to leverage our 40 years of experience in FX futures for customers in the region who access the futures market during the London business day, but we also plan to look at expanding into additional asset classes,” he added.