FX-MM: CME Group - Expanding their Global FX Footprint

  • 11 Oct 2012
  • By CME Group
  • Topics: FX

CME Europe Is Only Part of the Story

Derek Sammann, Senior Managing Director, CME Group Interest Rate and FX Products, talks to FX-MM's editor, Steve Shaw, about CME Europe and how market and regulatory developments are driving CME Group’s ambitious business development plans outside the U.S. beyond the new exchange derivatives exchange in London – CME Europe Ltd.

The new exchange is only part of the story. Sammann says, "As we build out our global infrastructure it has to align with where our customers are doing business. Globalizing our infrastructure includes our connectivity hubs for access to CME Globex, building out our European clearing house for clearing OTC foreign exchange products, listing FX derivatives for trading on our planned European exchange, and increasing the scale of our co-location facilities for our global customer base."

And the growth in FX has been more dramatic.  Sammann says, "over the last five or six years we’ve really focused on positioning our global foreign exchange business to be a much larger footprint as part of the overall global FX market. That has helped us to significantly outpace the OTC market growth. In 2005 we were trading $40 billion a day in our FX products – which we have now grown to over $110 billion a day this year."

Read the full article from FX-MM for more on:

  • How CME Group has gone from just 10 per cent of our business traded outside of U.S. trading hours to about 40 per cent of our business traded outside U.S. trading hours.
  • How the advent of European clearing is a driver both for futures business and OTC clearing services.
  • How market participants are trying to figure out the new regulatory landscape: Dodd-Frank, EMIR and ESMA, and Basel III.
  • How emerging markets generally have been CME’s fastest driver of growth over the last two years – the Mexican peso is the single biggest emerging market product.

Read Full Report