FierceFinanceFierceFinanceITFierceComplianceIT   FierceCIO

CDS clearing market to shift?

Tools
Tags
Pimco
Intercontinentalexchange
Credit Default Swaps
CME Group
Clearinghouse
Citadel Investment Group
CDS
capital management
BlackRock

Does the CME Group have a chance in the nascent CDS clearing market? It certainly remains the underdog. The IntercontinentalExchange, known as ICE, has leaped out of the gate to a big advantage. It is the only entity that can boast any real clearing volume. We've noted before that this stems in part from its relationships with the top dealers, all of whom are part owners of the service.

But the CME and its partner Citadel are not giving up. According to Securities Industry News, they will announce within weeks their new clearing venture--after the CME scrapped its original system--and hopes to outflank the ICE. The CME Group is building some sell-side links and hopes many sign on.

It has also built some ties to the buy-side. It seems to have persuaded the likes of AllianceBernstein, BlackRock, BlueMountain Capital Management, the D. E. Shaw group and PIMCO to join. It may get some regulatory support, if officials decide that the market would be better off with true clearing competition. 

For more:
- here's the article

Related Articles:
The state of CDS clearing
CME, Citadel give up on CDS exchange plans
ICE making inroads in CDS clearing race?
CDS clearinghouse launch immanent?

Bookmark and Share
Get Your FREE FierceFinanceIT Email Newsletter:
Be the first to comment

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

To combat spam, please enter the code in the image.