INTERVIEW: CME Eyes Europe, Asia, Clearing Listed Derivatives

CME Group. Inc. (CME) expects its trading volumes in Europe and Asia to outpace those in the U.S. through 2011 as it expands its business globally, Bob Ray, managing director of international products and services for CME Group told Dow Jones Newswires Friday.

"Europe and Asia are critical for us and our growth here has been excellent," Ray said on the sidelines of a derivatives industry conference in Interlaken, Switzerland.

CME, the world's largest futures exchange, will consider clearing listed derivatives through its new European clearing platform after it gains regulatory approval in the U.K. from the Financial Services Authority. More immediately, the company plans to begin clearing over the counter energy swaps through the U.K.-based venture.

"Metals and commodities are also an obvious extension to be developed later. Obviously with our position on rates, foreign exchange is also in the pipeline. The long-term plan is to have a fully functioning clearing house across all asset classes. Ours is a very broad view on clearing."

Ray hopes CME will receive approval from the FSA for the U.K. clearing venture shortly, which would put it in a position to launch its platform by November.

"On timing however, we are focused on getting it right the first time and won't rush," he said.

CME plans to boost staff in Europe by up to 250 by the end of 2012. The company is lifting its head count significantly in Singapore to include more client-side and marketing staff, Ray said. CME is also considering opening an office in Mexico City to help foster its partnership with the Mexican Stock Exchange, Bolsa Mexicana de Valores.

CME's growing research and development teams in Asia and Europe focus "on what's germane to that region," as the company pushes into new and often less mature markets than those in its U.S. home base.

Underlying CME's success in developing markets abroad, Ray said international volume grew more than 19% last year, just as trading volume in the U.S. declined by around the same amount for the period.

-By William Launder; Dow Jones Newswires; +49 69 29 725 515; william.launder@dowjones.com

(Jacob Bunge contributed to this article.)

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