CME Group, the world’s largest stock exchange in terms of market capitalisation, has announced plans to open a derivatives exchange in Europe, based in the UK.
If approved by regulators the new bourse will begin trading products in the foreign exchange futures market from the second quarter of 2013. The groups Executive Chairman and President, Terry Duffy said this move would be a key part of the company’s strategy going forward.
“Business continues to come in from our diverse set of customers in Europe, with more than 20 per cent now originating in that region” he stated.
Robert Wray, currently managing director for products and service at CME Group will head up the European exchange, and transactions will be cleared by CME Clearing Europe, which was set up last year to process derivative transactions.
In the USA 98 per cent of the futures market is currently controlled by CME, with about 20 per cent of business being conducted outside of US trading hours. The Group had previously sought to buy the London Metal Exchange, which would have provided a UK derivatives exchange licence automatically, but were eventually outbid by Hong Kong Exchanges and Clearing, who paid £1.39 billion for the exchange..