CME to close London derivatives bourse amid tepid European demand
Derivatives marketplace CME Group is to close its London bourse as growth from European customers failed to materialise. The company will shutter its exchange, CME Europe, and clearing house, CME Clearing, by the end of the year, it said. A spokeswoman said: "Our customers have shown that they prefer to access our global products, deep liquidity and greater capital efficiencies through our US infrastructure.” Its decision was not connected to Brexit and the company will keep its London office open, according to a report by Philip Stafford in the Financial Times.
CME Group (NASDAQ: CME), one of the world’s largest derivatives marketplaces, has opted to scale back its London-based derivatives exchange and clearing house, CME Clearing Europe, targeting a year-end closure date for the unit, according to a group statement.

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The move comes as Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term headwinds in the industry affect groups operating in the UK – CME Group will be working with a multitude of market participants and regulatory authorities in a bid to foster a smooth transition. Regardless, the move speaks more to a shift in demand, in this instance, towards its US infrastructure and operations.

According to William Knottenbelt, CME Group Senior Managing Director, International, in a statement on the closure: "While Europe continues to be a critically important and expanding market for CME Group, with average volumes of more than 2.6 million contracts per day from European clients during 2016, our customers have shown that they prefer to access our global products, deep Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and greater capital efficiencies through our U.S. infrastructure.”

"Though we have made the business decision to close these London-based entities, we will continue to maintain a significant operation in London to execute our global growth strategy, including serving our European client base, developing innovative products and services, and helping customers effectively manage their risk across every major asset class,” he added.