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.”
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.