CME, Citadel Derivatives Exchange In Talks For First Trades

Dec 3 2009 | 1:42pm 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.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.