CME Group Closing Down European Clearing Operations By Year’s End

The closure comes amidst increasing demand for the group's US-based infrastructure.

CME Group (NASDAQ: CME), one of the world’s largest derivatives marketplaces, has opted to scale back its London-based derivatives exchange and clearing house, CME Clearing Europe, targeting a year-end closure date for the unit, according to a group statement.

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The move comes as Brexit headwinds in the industry affect groups operating in the UK – CME Group will be working with a multitude of market participants and regulatory authorities in a bid to foster a smooth transition. Regardless, the move speaks more to a shift in demand, in this instance, towards its US infrastructure and operations.

According to William Knottenbelt, CME Group Senior Managing Director, International, in a statement on the closure: “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.”

“Though we have made the business decision to close these London-based entities, we will continue to maintain a significant operation in London to execute our global growth strategy, including serving our European client base, developing innovative products and services, and helping customers effectively manage their risk across every major asset class,” he added.

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