The CME Group, which operates the Chicago Mercantile Exchange, the Chicago Board of Trade and the New York Mercantile Exchange, will close two European units in a setback for its efforts to expand its global footprint.
The company will close CME Europe, a derivatives exchange, and CME Clearing Europe, a clearing house, by the end of the year, William Knottenbelt, the senior managing director for CME International, said in a statement.
American exchanges started pushing into overseas markets and into derivatives trading more than a decade ago as their core businesses came under pressure.
CME set up the European clearing house in 2011 as part of its international expansion. The derivatives exchange started in 2014.
Both operations, which are based in London, have been losing money because clients preferred to do the trading and clearing in the United States, partly because they had access to more products and greater liquidity.
Altogether, the two units lost more than $110 million in 2016.
CME maintained that it was still committed to Europe, saying that it was still an important market for the company.
“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,” Mr. Knottenbelt said.
Aside from CME Europe and CME Clearing Europe, the group deals with about 2.6 million contracts a day for European clients.
The sector has been in a state of flux in Europe. The London Stock Exchange and Deutsche Börse had been trying to engineer a merger to create Europe’s largest stock market operator, a move intended to create a champion that could better challenge CME Group and the Intercontinental Exchange, which owns the New York Stock Exchange.
But European antitrust regulators blocked their third try to combine in March.
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