CME Group has revealed that it has applied for approval from the Financial Services Authority (FSA) to launch an exchange in London, which will be based upon its electronic trading platform Globex.
Providing the group gets regulatory approval to become a Recognised Investment Exchange, CME Europe will begin trading foreign exchange (FX) futures products in mid-2013.
“Our application to establish an exchange in Europe fits within our strategy to grow organically and is an important next step to meet the growing regional demand from our customers,” said CME Group CEO, Phupinder Gill.
According to CME, more than 20 percent of its business is now generated from Europe.
“Launching with a suite of FX products allows us to leverage our 40 years of experience in FX futures for customers in the region who access the futures market during the London business day, but we also plan to look at expanding into additional asset classes," it said.
Robert Ray, currently managing director of products and services at CME Group, will become CEO of CME Europe once the exchange launches.
Computerworld UK recently spoke to CME Group’s CIO, Kevin Kometer, who explained how the group has been upgrading its core Globex platform from Tandem NonStop systems, which are similar to mainframes, to standardised Linux machines.
CME’s electronic trading platform is made up of three main components – order entry, the matching engine and market data. Kometer has been overseeing the project to move all of these components off the Tandem systems onto Linux.
“So we started with all these different parts running on one big machine, with all these different markets running on one system. We gradually moved the order entry and market data parts off and just kept the match engine on the original system,” explained Kometer.
“However, we quickly realised we could achieve much better performance, better reliability and greater cost efficiencies if we could run them all on commodity hardware, such as HP and Dell. So, we eventually moved all those Tandem machines onto Linux systems, and as soon as we did that we increased performance by a magnitude.”
CME completed the migration of the entire Globex platform onto Linux boxes last year, “which has reduced our latency from seconds down to 4 – 6 milliseconds”, Kometer added.