Derivatives marketplace CME Group’s new legal entity CME Amsterdam BV 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 BV – 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 BV, to minimise disruption and assist clients in meeting their MiFID II obligations. CME Amsterdam BV 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 BV will be operational from 18 March 2019.
