Chicago Mercantile Exchange Group (CME Group), the world’s leading derivatives exchange, and the European Energy Exchange (EEX), the world’s leading exchange for electricity and European energy products, have reached an agreement under which EEX will transfer its European dairy business to the CME Group – the exchange that is already the hub for risk management in the US dairy industry.
Under the agreement, EEX intends to phase out its dairy business by the end of 2027 at the latest and to transfer its family of indices, which underpin the existing dairy futures, to CME Group. The transaction, which also includes the European indices for butter and skimmed milk powder, marks the CME Group’s entry into the European dairy market. The CME Group plans to launch its own European indices, as well as futures and options on dairy products.