CME to clear CDS?

I’m not sure what will come of this and what it means for CME or ICE at this stage, but the direction is obvious. CDS securities will start trading in standard form on some exchanges, with all the clearing, operations, etc. support that comes with it. Long-term it should be a positive, especially for firms worried about marking books in OTC securities. It also might be a big payday for CME and ICE (which has already started the process). At a P/E of roughly 30, neither is cheap, but might be worth keeping an eye on.

http://www.ft.com/cms/s/0/75922198-dfa1-11de-98ca-00144feab49a.html

Last 5 posts by Yaron Sadan

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