LONDON, July 13, 2011 /PRNewswire/ -- CME Clearing Europe, CME Group's European clearing house, today announced that it will begin clearing a new alternative fuel product, German Specification T2 Ethanol Swaps, and a new vegetable oil product, US dollar-denominated Rapeseed Oil Swaps. The company also announced that it will offer margin offsets between US dollar and Euro-denominated Rapeseed (Argus) Calendar swap contracts and the Argus Biodiesel RME FOB Rotterdam swap.
"The expansion of products is in line with our commitment to helping customers manage their risk. The energy market is adapting to the introduction of more alternative fuels, and we want to offer cleared products that enable those products to be risk managed alongside more traditional energy products," said Andrew Lamb, Chief Executive Officer of CME Clearing Europe. "We will offer risk-assessed margin offsets between products as the product range expands."
In conjunction with clearing commodity contracts that support its clients' risk management needs, CME Clearing Europe offers margin efficiencies through inter-commodity spread credits where product pairs are price correlated, and offers margin offsets between its OTC WTI and Brent crude oil contracts, as well as its gasoil contracts.
"Through the recent launch of CME Clearing Europe, CME Group is now providing a European platform for its global benchmark products. This represents an important value added for Citi and our customers, especially considering regulatory developments, as well as our clients' increasing interest in European specific products. A point which was clearly proven when we cleared one side of the first OTC cleared Rapeseed Oil Swap trade at CME Clearing Europe," says Andrew Sterry, European Head of OTC Clearing at Citi in London.
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 provides world class clearing for a broad base of customers and extends 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. CME Clearing Europe Limited was approved as a Recognised Clearing House (RCH) by the Financial Services Authority (FSA) of the United Kingdom in December 2010. Separately, CME Clearing Europe Limited has applied to the Commodity Futures Trading Commission (CFTC) to become a registered Derivatives Clearing Organization (DCO).
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 world's leading central counterparty clearing providers, which offers 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.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, CME Clearing Europe Ltd, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered 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.
SOURCE CME Group