Slow Start Forecast for CME Europe

The launch of CME Europe, the CME Group’s new London-based financial markets exchange, in two days’ time is not expected to see high volumes of trading initially. However investors are reported to be showing keen interest in the prospects for Asia.

“Because it’s taken a bit of time to launch and get approval, we think it will be a relatively gentle start,” said William Knottenbelt, senior managing director for Europe, the Middle East and Africa (EMEA) at CME Group in London. “But as people start to see the market open, we should see decent volume coming in.”

“We’re seeing a lot of Asian interest from regional banks and other players. People are also starting to realise the futures market is going to be a cheaper medium for trading FX than the over-the-counter (OTC) market.”

The launch of CME Europe was originally scheduled for September 2013, but suffered a series of delays before receiving regulatory approval last month from the UK Financial Conduct Authority (FCA). It will now commence operations from 27 April, with 30 foreign exchange (FX) futures contracts.

Software provider RTS Realtime Systems Group (RTS) said that the firm will offer immediate access to CME Europe upon the exchange’s launch. “We’re very pleased to provide connectivity right away to CME’s new derivatives exchange in Europe, offering immediate access to not only commodity contracts such as biodiesel futures, but a full suite of FX products,” said Alexander Kranz, RTS managing director, Europe.

“Our clients can leverage our platforms and UK data centre to trade these exchange-listed contracts in concert with non-deliverable forwards and cash FX offerings in our network.”

RTS chief executive (CEO) Steffen Gemuenden added: “We’re committed to supporting CME Group’s new venture in Europe as we have long supported access to its exchanges in the US.

“We believe there is good demand among our global client base for a new derivatives exchange, regulated and cleared in Europe that offers compelling products, as well as interesting opportunities for spreading and arbitrage.”

A list of products, members and product specifications for CME Europe can be found at www.cmegroup.com/europe/.

2 views

Related reading

hanjin-shipping
donald-trump
job
New consumer banking head for Citi Asia Pacific