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CME Clearing Europe Receives Recognised Clearing House Status from FSA

                London,  16 December 2010 -- CME Clearing Europe, a wholly-owned subsidiary of CME Group, 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.” 

           “J.P. Morgan is very pleased to provide an integrated settlement banking, custody and cash liquidity solution to CME Clearing Europe and its member firms  as part of our longstanding commitment to supporting European and global exchanges and clearing houses,” said Paul Wilson, international head of client management and sales for Financing and Markets Products at J.P. Morgan.  “J.P. Morgan’s integrated service allows us to offer CME Clearing Europe and its member firms a single, integrated solution across cash and securities collateral management and custody.”

 

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 Clearing Organization (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.  CME Clearing 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® 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®.   These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets. 

 

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