TRADING VENUES

CME to close European exchange and CCP by end of 2017

The Merc will close CME Europe and CME Clearing Europe by years end.

By Joe Parsons joe.parsons@strategic-i.com April 12, 2017 12:20 PM GMT

CME Group has decided to close its London-based exchange and clearing house by the year-end, marking the latest derivatives venture to shut down its operations.

CME stated it intends to close its FX and energy exchange CME Europe, as well as CME Clearing Europe, which clears interest rate swaps and listed derivatives.

"While Europe continues to be a critically important and expanding market for CME Group, with average volumes of more than 2.6 million contracts per day from European clients during 2016, our customers have shown that they prefer to access our global products, deep liquidity and greater capital efficiencies through our U.S. infrastructure," said William Knottenbelt, senior managing director, International, CME Group.

According to reports CME Europe, which was launched in 2014 as a competitor to ICE Futures Europe, had been under review by the global exchange group.

Meanwhile CME Clearing Europe has found it difficult to break the dominant hold of LCH and Eurex in the swaps clearing market.  

It is the first major decision from CME Group’s new CEO and current chairman, Terry Duffy, who took on the expanded role at the end of last year.

With the closing of CME Europe, it marks the latest venture to shut down after Nasdaq NLX, the interest rate futures exchange, announced it will close its operations by the end of April.

CME Group said it remains committed to Europe and “will continue to maintain a significant operation in London to execute our global growth strategy, including serving our European client base,” Knottenbelt added.