The venture, which first applied for approval from UK regulators in June 2009, marks the first attempt by the CME to penetrate the European market and is part of a broader push by the Chicago-based group to benefit from a global push to put swathes of over-the-counter derivatives through clearing houses. CME Clearing Europe, the London-based subsidiary of CME Group, will begin clearing more than 150 OTC energy and commodity derivatives on May 6, the company said yesterday in a statement.
Fifteen banks including BNP Paribas, Citigroup, Deutsche Bank, HSBC, Royal Bank of Scotland and UBS are on track to become members of the clearer in May. The launch date of CME Clearing Europe is later than planned, as a result of the clearer's decision last year to switch its initial focus from credit default swaps to energy-related contracts.
Plans for clearing CDS are still being shaped, according to chief executive Andrew Lamb, who added that interest rate swap clearing services would be the company’s next port of call later this year, as it seeks to build out a multi-asset European clearing house. Lamb said: “We aim to introduce clearing for OTC financial derivatives, beginning with interest rate swaps, in parallel with the deepening of the commodity clearing.”
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