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Monday, February 10, 2014

CME plans interest rate swap future aimed at European market, (NASDAQ: CME)

CME Group Inc, the largest U.S. futures exchange operator, said on Monday it will launch new interest rate swap futures contracts targeted at the European market. CME, which owns the Chicago Mercantile Exchange, will begin trading Euro-denominated deliverable interest rate swap futures on April 14, pending approval from the U.S. Commodity Futures Trading Commission, the company said in a statement.The Chicago-based exchange operator is banking on international growth to expand and plans to launch its first overseas exchange in London this year.The Euro-denominated deliverable interest rate swap future "is designed to meet the needs of European financial market participants, including banks, hedge funds, asset managers and insurers," CME said in the statement. CME already has U.S. dollar-denominated deliverable interest rate swap futures."This product has the same economic exposure as an interest rate swap with the margin and liquidity benefits of a futures contract, and at expiration all open positions will deliver into a CME cleared euro interest rate swap," the company said.

CME Group Inc. (CME Group) offer a range of global products across all asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. Shares of CME fell by 0.48% or $-0.365/share to $75.32. In the past year, the shares have traded as low as $56.60 and as high as $84.71. On average, 2052390 shares of CME exchange hands on a given day and today's volume is recorded at 648044.