CME Europe Launching This Sunday, RTS To Provide Connectivity
After a long row of regulatory hurdles the CME Group is launching the newest European derivatives exchange, with Realtime Systems
The CME Group is already running the Chicago Board Of Trade (CBOT), the Chicago Mercantile Exchange (CME) and the New York Mercantile Exchange after acquiring its parent company NYMEX back in 2008. One of the largest options and futures exchanges in the world has announced back in the beginning of March that it obtained regulatory approval from the Financial Conduct Authority (FCA) for its European exchange. CME Europe will start operating this Sunday, April 27th from London.
One of the leading low-latency and software solutions providers for institutional clients, Realtime Systems Group (RTS), has announced in a press release that it will deploy its network to provide access for its clients to the newest European derivatives exchange handled by the CME Group. RTS boasts one of the most complete multi-asset class solutions aggregating exchanges and execution venues worldwide.
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The Managing Director of the company’s European arm said that “RTS will provide connectivity right away to CME’s new derivatives exchange in Europe, offering immediate access to not only commodity contracts such as biodiesel futures, but a full suite of foreign exchange (FX) products. Our clients can leverage our platforms and UK data centre to trade these exchange-listed contracts in concert with non-deliverable forwards and cash FX offerings in our network.”
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RTS’ CEO Steffen Gemuenden has added that: “RTS believes there is good demand among our global client base for a new derivatives exchange, regulated and cleared in Europe, that offers compelling products, as well as interesting opportunities for spreading and arbitrage.”
Speaking to Forex Magnates reporters, CME Europe’s Executive Director and Head of Strategic Sales Felix Carabello, has confirmed that the exchange will be launching its FX business on Sunday as the final regulatory approval has been received.
With multiyear low volatility settling in major forex pairs, the CME Group’s FX business is not likely to pick up markedly right away. The launch of CME Europe will be crucial to the ambitions of the company to come at the center of the stage of derivatives marketplaces across Europe.
So they will start with FX too on monday? The press release said FX is still subject to final regulatory approval.
So they will start with FX too on monday? The press release said FX is still subject to final regulatory approval.
Thanks for the info. I hope they can get sufficient liquidity/marketmakers in their FX products. Contract-specs are much better than their Chicago futures (half-pip ticks, uniform 100K size an no inverse JPY quotes).
Thanks for the info. I hope they can get sufficient liquidity/marketmakers in their FX products. Contract-specs are much better than their Chicago futures (half-pip ticks, uniform 100K size an no inverse JPY quotes).
will they have “mini” or “micro” Fx futures?
will they have “mini” or “micro” Fx futures?
Jon: no, only 100K contracts.
By the way, they published the members list yesterday, it doesn’t look too impressive. Only 7 clearing members and 4 non clearing members.
Jon: no, only 100K contracts.
By the way, they published the members list yesterday, it doesn’t look too impressive. Only 7 clearing members and 4 non clearing members.
Whopping 4 eur/usd contracts traded today.. up to now anyways. Will they reach 2-digit contract volume on the first day? The race is on 😉
Whopping 4 eur/usd contracts traded today.. up to now anyways. Will they reach 2-digit contract volume on the first day? The race is on 😉
@Andy, you have to remember that their London exchange is new, and they already have an established venue in Chicago and New York. And they are competing with EUREX, LIFFE, LMAX, private dealers, banks, etc. Cut them some slack. Lets come back in 1-2 years or even 6 months to see if it picks up. Look how long it took LMAX to get where it is, let alone CME N. America. The article does not address how CME europe will be different from CME “N. America” and other exchanges. I don’t see any advantage UNLESS they are offering or intend… Read more »
@Andy, you have to remember that their London exchange is new, and they already have an established venue in Chicago and New York. And they are competing with EUREX, LIFFE, LMAX, private dealers, banks, etc. Cut them some slack. Lets come back in 1-2 years or even 6 months to see if it picks up. Look how long it took LMAX to get where it is, let alone CME N. America. The article does not address how CME europe will be different from CME “N. America” and other exchanges. I don’t see any advantage UNLESS they are offering or intend… Read more »
Jon: on paper, i would call the contract specs better than their Chicago coutnerpart. Its quotd in half-ticks, so there is at least the potential to pay 1/2 the bid-ask spread compared to the full-tick contracts. Also, all contracts are 100K size, so you don’t pay 2x the commission on gbp/usd like in Chicago. Fees are supposedly cheaper too.
Jon: on paper, i would call the contract specs better than their Chicago coutnerpart. Its quotd in half-ticks, so there is at least the potential to pay 1/2 the bid-ask spread compared to the full-tick contracts. Also, all contracts are 100K size, so you don’t pay 2x the commission on gbp/usd like in Chicago. Fees are supposedly cheaper too.