CME Plans London-based Derivatives Exchange

Source: WSJ

CME Group Inc CME +1.18% (CME CME +1.18% ), the world's largest exchange by market capitalization, Monday said it's planning to launch a London-based derivatives exchange, in a move that will see it compete with rivals run by NYSE Euronext NYX +0.70% (NYX) and Deutsche Boerse AG DB1.XE -0.14% (DB1.XE).

The exchange is applying to the U.K. Financial Services Authority for a recognised investment exchange license and will initially begin trading foreign exchange futures products, the company said.

Robert Ray, managing director for products and services at CME Group, will become chief executive of the new platform, which will operate on the CME's electronic Globex platform and clear through CME Clearing Europe, the company's European clearing house launched in May last year. The new exchange is expected to launch in mid-2013.

CME Group Chief Executive Phupinder Gill said in the statement: "Our application to establish an exchange in Europe fits within our strategy to grow organically and is an important next step to meet the growing regional demand from our customers."

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