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CME Delays European Exchange for Second Time

CME Group Inc. (CME), the world’s largest futures exchange, delayed the introduction of its planned London-based market for the second time because of a “technical issue around the delivery of physical currencies.”

The company said it is working with U.K. regulators to gain recognition for the exchange, known as CME Europe, and gave no new start date for the venue, according to a notice to customers obtained by Bloomberg News today. CME said in June that the venue would begin operations on Sept. 9. Earlier this month it pushed back the date to Sept. 29.

Nasdaq OMX Group Inc.’s new European derivatives market, called NLX, opened on May 31. CME’s London operation will also compete with Deutsche Boerse AG (DB1)’s Eurex and NYSE Euronext’s Liffe, the largest derivatives venues in Europe.

Liffe offers gilts, short-sterling and Euribor futures, while Frankfurt-based Eurex has contracts on German and French bonds. IntercontinentalExchange Inc. announced plans to buy NYSE Euronext (NYX) on Dec. 20.

Founded in the 19th century, CME’s business spans agricultural, energy, metal and financial futures. CME Europe is starting with currency derivatives in the region as it seeks to attract volume. Interest-rate futures are CME’s biggest business.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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