Exchange operator CME Group said on Tuesday it has received regulatory approval for the derivatives exchange it plans open in London.
With the approval of Britain's Financial Conduct Authority, the Recognised Investment Exchange will launch on April 27 and will list commodity products, the company said in a statement. The launch of the exchangevdesigned to provide a one-stop market offering services from trading to clearing has been postponed twice.
CME's European exchange, its first overseas market, will list commodities products but it also plans to launch a full suite of foreign-exchange futures on the same date, provided it receives final regulatory approval of some clearing conditions.
The company's move follows efforts by global regulators to push derivatives trading, previously conducted through dealers in over-the-counter transactions, onto electronic platforms and through central clearing houses to improve transparency and lower risk.CME Group Executive Chairman and President Terry Duffy said the new exchange responded to customers' needs for more ways to manage risk and access liquidity locally.
“CME Europe now allows us to better serve our customers in the region as we expand our business with relevant products,” he said. “The combined move to central clearing and London serving as the centre of global foreign-exchange trading will mean our new exchange is well positioned to serve all of Europe.”
CME, which owns the Chicago Mercantile Exchange, the Chicago Board of Trade and the New York Mercantile Exchange, had originally planned to launch the exchange in September last year but had to delay it twice while regulators considered the application and the company dealt will a technical problem.