CME Clearing Europe Receives Recognised Clearing House Status From FSA
By Cme Group, PRNEWednesday, December 15, 2010
LONDON, December 16, 2010 - CME Clearing Europe (www.cmeclearingeurope.com/), a wholly-owned
subsidiary of CME Group (www.cmegroup.com/), today announced that it
is approved as a Recognised Clearing House (RCH) by the Financial Services
Authority (FSA) of the United Kingdom. Barclays Bank PLC and J.P. Morgan will
act as the first settlement banks for CME Clearing Europe and will be a
central part of its payment infrastructure. J.P. Morgan will also provide
custody and liquidity services.
"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 Chief Executive Officer. "Through this new London-based subsidiary, we
will provide locally-relevant clearing services to meet the needs of our
European customers, a key CME Group market. Our London team will continue
their work to ensure potential clearing members and customers are ready for
our launch."
"We are delighted to have been appointed as a settlement bank to CME
Clearing Europe and support their efforts to provide safety and security
through their central counterparty clearing model," said Andy Reid, Head of
Non-Bank Financial Institutions at Barclays Corporate. "As the market looks
for ways to meet the new regulatory requirements and manage portfolios, we
look forward to working with the CME Clearing Europe team in providing their
clearing members with excellence in operational banking services."
CME Clearing Europe's initial focus will be on introducing OTC commodity
products, with clearing solutions for OTC financial products coming soon
after launch. The intention is to offer multi-asset OTC clearing, and to
build on the parent company's European presence to further extend the
geographical reach of CME clearing services.
Separately, CME Clearing Europe has applied to the Commodity Futures
Trading Commission (CFTC) to become a registered Derivatives
ClearingOrganization (DCO).
CME Clearing Europe is a separate clearing house with its own employees,
governance arrangements and capital; whilst having full access to the
clearing and risk management expertise, as well as the financial systems and
financial strength, of CME Group.
About CME Clearing Europe
CME Clearing Europe (www.cmeclearingeurope.com), a wholly owned
subsidiary of CME Group, has been established in London with the aim of
offering services as a multi-product clearing house focused on non-US
customers. CMEClearing Europe will provide world class clearing for a broad
base of customers, building on its European presence to extend the
geographical reach of CME Group's clearing services. CME Clearing Europe will
ensure stability and increase transparency in the markets cleared, helping to
reduce and contain systemic risk.
About CME Group
As the world's leading and most diverse derivatives marketplace, CME
Group (www.cmegroup.com) is where the world comes to manage risk. CME
Group exchanges offer the widest range of global benchmark products across
all major asset classes, including futures and options based on interest
rates, equity indexes, foreign exchange, energy, agricultural commodities,
metals, weather and real estate. CME Group brings buyers and sellers together
through its CME Globex(R) electronic trading platform and its trading
facilities in New York and Chicago. CME Group also operates CME Clearing, one
of the largest central counterparty clearing services in the world, which
provides clearing and settlement services for exchange-traded contracts, as
well as for over-the-counter derivatives transactions through CME
ClearPort(R). These products and services ensure that businesses everywhere
can substantially mitigate counterparty credit risk in both listed and
over-the-counter derivatives markets.
The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex,
E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc.
CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the
City of Chicago. NYMEX and New York Mercantile Exchange are trademarks of New
York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. All other trademarks are the property of their respective owners.
Further information about CME Group (Nasdaq: CME) and its products can be
found at www.cmegroup.com.
Media Contacts: Allan Schoenberg, +1-312-930-8189, Jeremy Hughes, +65-6593-5583, CME-G, news at cmegroup.com, www.cmegroup.mediaroom.com; Investor Contact : John Peschier, +1-312-930-8491
Tags: CME Group, December 16, London, United Kingdom