* European launch delayed for second time
* Exchange cites "technical issue"
* No new start date given
* Plans to start commodities trading by third quarter 2014
By Emma Farge
GENEVA, Sept 27 (Reuters) - CME Group Inc, the No. 1
U.S. futures market operator, is again postponing the start of
operations in London - its first exchange abroad - due to a
technical problem, it said on Friday.
It did not provide a new date.
The 165-year-old exchange is trying to better compete with
European rivals such as Germany-based exchange Eurex.
"This notice is to advise you that the launch date for CME
Europe Ltd. of 29th September has been delayed due to a
technical issue around the delivery of physical currencies," the
CME told customers in a memo seen by Reuters.
CME, which owns the Chicago Mercantile Exchange, the Chicago
Board of Trade and the New York Mercantile Exchange, had already
postponed the launch of London-based CME Europe Ltd to Sept. 29,
for a trade date of Sept. 30, from Sept. 9.
CME plans to offer 30 foreign-exchange as well as options
and commodities contracts. Outlining the timeframe for
non-currency products for the first time, CME Europe's CEO
Robert Ray said it plans to offer options within two months of
launching and bring in commodities by the third quarter of 2014.
The exchange will continue to use the Libor interbank
lending rate as a basis for its derivatives contracts despite
rigging scandals which have undermined trust in the benchmark.
"Nobody can ditch it. Despite the hyperbole, just look at
the number of mortgages and loans out there linked to libor,"
said Ray on the sidelines of a conference in Geneva this week.
Britain has put in place new reforms to tighten how Libor is
run and top U.S. regulator CFTC has called for reform to the
benchmark at a global level.
"We will just have to work with a different methodology
going forward," he said, referring to the reforms.