CME Group Inc. (CME) has received approval for its CME Clearing
Europe by U.K. regulators, allowing the company to move forward
with launching the multi-product clearing house.
The world's biggest exchange operator said the Financial
Services Authority has approved CME Clearing Europe as a recognized
clearing house.
"Receiving RCH status from the FSA means we can now fully focus
on the launch of CME Clearing Europe early in 2011," said Andrew
Lamb, CME Clearing Europe's chief executive.
The business's initial focus will be on introducing
over-the-counter commodity products, with clearing solutions for
over-the-counter financial products coming soon after launch, the
company said.
The launch of the London-based clearinghouse is part of a
broader reach for the company into the over-the-counter markets.
Commodities and other derivatives have driven trading lately as
investors look for opportunities outside of equity markets. CME
also has stressed the importance of Europe and Asia as key growth
markets going forward.
Legislators and regulatory agencies in the U.S. and Europe are
promoting the clearing function, which requires investors to post
collateral against outstanding trades as one means of reducing risk
in the over-the-counter derivatives market.
CME Clearing Europe also has applied to the Commodity Futures
Trading Commission to become a registered derivatives clearing
organization.
Shares of CME recently fell 0.3% to $317.42. The stock has
fallen 5.5% so far this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;