CME looks to launch FX options clearing in Q4

Following regulatory approval, the exchange looks to start dealer-to-dealer clearing in Q4 and client clearing in 2018

Chicago Mercantile Exchange building London
CME, London: next phase will see the exchange work with dealers to set up beta testing at the start of Q4

The US Commodity Futures Trading Commission (CFTC) has given its blessing to the CME Group to provide clearing services for over-the-counter foreign exchange options; a service expected to go live in the fourth quarter of this year.

In the first instance, the exchange will offer dealer-to-dealer (D2D) clearing services from Q4, followed by client clearing in 2018.

The clearing solution will apply to cash-settled, plain vanilla, European-style FX options on seven of the exchange’s biggest curre