CME Group Inc. (CME) launched a post-execution clearing service
for non-deliverable forwards on the U.S. dollar versus the Chilean
peso.
CME and other exchanges have been expanding efforts to handle
more of a $4 trillion-a-day foreign exchange trading business
dominated by over-the-counter products. Hedge funds and other
proprietary traders have become more active in the forex market,
increasing the appeal of centralized clearing services provided by
the exchanges.
CME said Monday its offering will mitigate counterparty risk,
expand liquidity and improve operational efficiency for trades of
the non-deliverable forwards--a type of futures contract.
The company's FX products director, Craig LeVeille, said the
move is "the first step in our broader initiative to provide
clearing services for a wide range of FX products later this
year."
Shares closed Friday at $294.36 and were inactive premarket. The
stock is down 8.5% so far this year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com