US exchange operator CME Group is to close its London-based derivatives exchange and clearing house.
The group has announced plans to shutter the loss-making CME Europe and CME Clearing Europe by the end of 2017.
The derivatives exchange was launched in 2014 and the clearing business in 2011. Between them, they have lost a cumulative $110m (£88m).
The company said the decision had been taken because its customers prefer to access global products, liquidity and capital efficiencies in the US.
The decision to close the operations is understood to have been motivated by business and is not related to the UK vote for Brexit.
Senior managing director William Knottenbelt said CME Group would continue to “maintain a significant operation in London” despite the closures.
CME Group has around 400 employees in the UK, and these closures will affect less than 10 per cent of these staff, City A.M. understands.
“While Europe continues to be a critically important and expanding market for CME Group, with average volumes of more than 2.6m contracts per day from European clients during 2016, our customers have shown that they prefer to access our global products, deep liquidity and greater capital efficiencies through our US infrastructure,” he said.
“Though we have made the business decision to close these London-based entities, we will continue to maintain a significant operation in London to execute our global growth strategy, including serving our European client base, developing innovative products and services, and helping customers effectively manage their risk across every major asset class.”