Futures exchange operator CME Group Inc. on Thursday struck a deal to buy Elysian Systems Ltd., a London company that provides trading systems for over-the-counter derivatives.
Chicago-based CME will incorporate Elysian’s technology into its ClearPort platform, which provides clearinghouse services for off-exchange derivatives transactions and which has come under scrutiny from U.S. regulators that are implementing new regulations for over-the-counter trade.
“This is really intended to provide more flexibility for us in our energy business in terms of supporting the aggregation of quotes among interdealer brokers,” said CME Chief Executive Craig Donohue in a presentation to investors Thursday.
Financial terms of the deal were not disclosed. CME’s move to buy Elysian comes during efforts by regulators to shift more over-the-counter derivatives activity onto more transparent trading platforms and clearinghouses to make the market less risky and more observable following the 2008 financial crisis.
