The CME Group has received regulatory approval for a London-based derivatives exchange – six months after it’s expected launch date.
The exchange was given the green light by the UK’s Financial Conduct Authority to list its first commodity products, and is now set to begin trading on 27 April. It will also launch with 30 FX futures products on the same date, subject to final regulatory approval of certain operational clearing conditions.
The group has had to postpone its launch date twice since last September because of regulatory delays.
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," CME Group executive chairman and president Terry Duffy, said.
The regulatory approval expands CME’s presence outside the US and comes a week after the death of Robert Ray, CME Europe’s chief executive, who during an interview with The TRADE last year said the group was looking to replicate the success we’ve had with particular asset classes in the US. “We’re like kids in a candy shop in terms of our perception of opportunity,” he said.
CME Europe may offer exchange-traded interest rate futures on its London-based platform, after it establishes its foreign exchange products, to avoid competing directly with the region’s leading derivatives exchanges by volume, IntercontinentalExchange’s Liffe and Deutsche Börse-owned Eurex.
"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,” William Knottenbelt, senior managing director, EMEA for CME Group, said.