Introducing CME Clearing Europe:
CME Group's European clearing house

Welcome to CME Group's European clearing house. CME Clearing Europe has been established to offer greater choice of central counterparty clearing infrastructure to users of derivatives outside the US. CME Group has developed systems and operational and risk management standards that support its position as the world's largest and most diversified derivatives marketplace; and since 2002 has extended its clearing in the US to cover OTC derivatives: commodities, IRS and CDS. On the basis of those systems and the accumulated clearing experience and investment, CMECE aims to offer a full range of OTC derivatives clearing from its London base.

OTC commodity derivative clearing

CMECE has chosen a staged approach to the provision of multi-asset class clearing of OTC derivatives, starting with OTC commodity derivatives where, in contrast to the clearing of OTC financial derivatives, the clearing of client business has been accepted since 2002.

CMECE now lists [almost/over ] 180 OTC commodity products for clearing. The majority are based on energy prices. In most but not all cases the products are also available for clearing in the US through CME Clearing. In both cases, entry of trades to clearing is simplified through the use of CME Clearport. This will shortly be complemented by CME Direct. The aim is to add new products tailored to client demand outside the US.

OTC financial derivatives clearing

We intend to broaden the scope of clearing to include OTC financial derivatives, beginning with interest-rate swaps and FX products. Plans will be announced during the course of 2012, but the basis of the clearing will feature the core risk approach and operational model developed by CME, with an approach to client clearing and protection tailored to English law and regulation.

Clearing of exchange-traded derivatives

CMECE has the capability to clear exchange-traded derivatives but no immediate plans.

Regulatory status

CMECE was approved by the Financial Services Authority as a Recognised Clearing House in November 2010.