FT: CME considers launching futures exchange in London

09 April 2012

CME Group is considering opening a futures exchange in London as a way for the US operator to expand in Europe. The development is a sign that if CME does not win the bidding for the London Metal Exchange, it could build a European futures exchange to complement its existing clearing business.

CME Group is looking into developing a futures exchange in London, a move that would complement the firm's clearing business in the UK.

CME is one of a handful of global exchanges, including NYSE Euronext, that have submitted initial bids for the London Metal Exchange (LME), with IntercontinentalExchange (ICE) also believed to have bid.

It underscores how London is emerging as the key battleground for derivatives trading and clearing as new regulations, such as the US Dodd-Frank Act and similar European legislation, force over-the-counter derivatives to be processed through clearing houses.

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