CME Group Granted FCA Authorization, European Exchange Slated for April 27 Launch

CME Group, one of the world’s largest options and FX exchanges, has announced its successful bid and approval from the Financial Conduct Authority (FCA) for its newest London-based derivatives exchange, according to a CME company statement.

Chicago-based CME Group caters to nearly all asset classes, including derivatives, options, FX, and maintains offices across nearly every major commercial hub globally. Despite lackluster financial metrics as of late, the group remains expansive, characterized by its new initiative in London in an attempt to fortify its derivatives offering to European clients.

FX Suite Still Awaiting Regulatory Approval

The company’s prior efforts were rewarded today with the approval from the FCA, one of the United Kingdom's paramount regulators. As a result of the authorization, CME Group has received the green light for the April 27, 2014 launch of its CME Europe Ltd subsidiary.

According to Terry Duffy, President and Executive Chairman of CME Group, in a recent statement, "Our European customers are increasingly looking for ways to manage risk and access Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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. In addition, the combined move to central clearing and London serving as the center of global foreign exchange trading will mean our new exchange is well positioned to serve all of Europe."

Indeed, the approval via the FCA grants CME Group its first commodity offering listing, adding to an already extensive suite of products. The April 27 date is an important one for CME, namely as it has targeted this date for a parallel release of an FX offering as well, pending the requisite regulatory approval.

CME Group Targets European Clientele

“Our global growth strategy continues to be focused on organic growth. The launch of clearing for over-the-counter interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term through CME Clearing Europe last year, our new European Trade Repository this year and now the upcoming launch of CME Europe further develop our international strategy. 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," added William Knottenbelt, Senior Managing Director, EMEA for CME Group, in a statement regarding the launch.