CME, Citadel Derivatives Exchange In Talks For First Trades

Dec 3 2009 | 2:42pm ET

More than a year after announcing its plans to create a combined clearinghouse and exchange for credit default swaps, the CME Group and its partners at Citadel Investment Group may actually be poised to clear its first trades.

The CME is in talks with the top over-the-counter credit derivative dealers and could announce an agreement with some of them as soon as today. And if a deal is struck, CDS could begin clearing on the CMDX by Dec. 15, the deadline set by the CME.

Among the firms in talks with CMDX are Barclays Capital, Citigroup, Goldman Sachs, JPMorgan Chase, Deutsche Bank, Morgan Stanley, UBS and Credit Suisse, the Financial Times reports.

In September, CMDX gave up its plans to launch an electronic-trading platform engineered by Citadel as part of the clearinghouse, and brought in partners to incentivize potential customers. Among the new stakeholders were hedge funds BlueMountain Capital Management and D.E. Shaw & Co.


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