CME Group Inc. has hired foreign exchange market veteran Roger Rutherford to head its global currency trading unit from London, according to a person familiar with the situation.
The Chicago-based exchange group hired Rutherford from London-based CLS Services Ltd., a key provider of settlement services in the huge forex market, which is dominated by over-the-counter trading rather than cleared or exchange-traded business.
Rutherford will start as managing director for global FX by the end of the month, according to a source familiar with the hiring, and will be one of the most senior CME executives based outside the U.S., part of a broader strategy to decentralize key management. He has already left his position as head of product management for CLS
London’s status as the largest center for foreign exchange dealing made it a natural base for CME’s latest push into the sector after an unsuccessful effort to break into the trading and clearing of currency products through the now-closed FXMarketSpace joint venture with Reuters.
CME’s currency futures and options products have been a key positive in recent months as the volume of interest-rate contracts has been pressured by low rates.
Craig Donohue, CME’s chief executive, has said in recent months that the company has gained traction in OTC forex markets, particularly in Europe and Asia, as high-frequency traders and other participants are seeking clearing services offered by CME for spot transactions.
Rutherford will oversee CME’s planned 2011 launch of forex volatility contracts, which will be based on an index measuring historical movements of futures on CME’s six major currency pairs.
The company is partnering with the recently created Volatility Exchange to list the new contracts.
Rutherford will report to Derek Sammann, who previously held the FX post. Sammann was promoted to managing director of CME’s forex and interest rate product line.
