CME Group Approved To Operate in Amsterdam
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that its new legal entity CME Amsterdam B.V. has received approval from the Dutch Minister of Finance.
The establishment of the new Amsterdam-based entity will ensure that CME Group’s BrokerTec and EBS venues and CME Regulatory Reporting services (formerly NEX Regulatory Reporting) can continue to service their EU27 clients, regardless of the outcome of the UK’s withdrawal from the EU.
CME Group will transition the following businesses to CME Amsterdam B.V. – BrokerTec’s European Government Bond and European Repo businesses (under a new Regulated Market licence) and on-MTF FX forwards and swaps (under a new MTF licence), to maintain a single pool of liquidity. BrokerTec’s UK Gilts and Gilt Repo businesses and all other EBS businesses, will continue to operate with no change.
In addition, CME Group will transition the CME Regulatory Reporting Approved Publication Arrangement (APA) and Approved Reporting Mechanism (ARM) trade and transaction reporting services for EU27 clients to CME Amsterdam B.V., to minimise disruption and assist clients in meeting their MiFID II obligations. CME Amsterdam B.V. will operate alongside Abide Financial DRSP Limited (AFDL), which is authorised as an ARM and APA by the UK FCA and will continue to provide these services to UK clients.
CME Amsterdam B.V. will be operational from 18 March 2019.
Participants are concerned about dispersed trading liquidity and regulatory data.
Members based in the European Economic Area will be able to continue using Liquidnet.
The MOUs come into force on the date EU legislation ceases to have direct effect in the UK.
The instruments now commence on ‘exit day’, rather than 11pm on 29 March.
The US regulator has provided guidance on the transfer of uncleared legacy swaps.