CME to Launch European Exchange on April 27

CME Europe had been delayed for several months, most recently in September 2013, when the exchange operator announced that it was working to solve technical issues, and collaborating with the UK Financial Conduct Authority (FCA) on gaining approval.

The bourse will operate as a Recognized Investment Exchange, based in London. It will offer a range of foreign-exchange (FX) futures from the launch date, given that regulators approve the offerings subject to certain clearing considerations, and has gained the green light for its commodity products already.

"Our European customers are increasingly looking for ways to manage risk and access liquidity in a local jurisdiction. CME Europe now allows us to better serve our customers in the region as we expand our business with relevant products," says CME Group executive chairman and president Terry Duffy. "In addition, the combined move to central clearing and London serving as the center of global foreign-exchange trading will mean our new exchange is well positioned to serve all of Europe."

CME Group is the latest US exchange to build out its derivative-trading capabilities in Europe, with Nasdaq OMX launching its NLX derivatives exchange, also based in London, last May. IntercontinentalExchange operates Liffe in London through its acquisition of the New York Stock Exchange, while established European venue giant, Deutsche Börse, runs the powerful Eurex platform. The London Stock Exchange offers derivatives through its Turquoise multilateral trading facility, and has been making inroads into fixed-income trading with its MTS subsidiary, most recently in the US with its acquisition of Bonds.com.