Commodity derivative exchange the Chicago Mercantile Exchange (CME) has been granted a clearing and settlement (CS) facilities licence by acting assistant Treasurer Mathias Cormann.
Granted under the Corporations Act 2001, the licence allows CME to operate its overseas CS facility in Australia.
Under the licence, CME is allowed to provide over-the-counter transactions in interest rate derivatives, and non-Australian dollar denominated interest rate derivatives traded on the CME market or the financial market regulated by the US Securities Exchange Commission.
CME can only provide services to an Australian participant in relation to transactions for the Australian participant's proprietary account.
