Thursday, February 19, 2009

Launch Imminent for NYSE’s U.S. CDS Clearing Service

While the trading community has been reticent thus far, said Niederauer, “CDS is only the first of what I expect will be many OTC derivatives that move toward an exchange clearing model and represent a key area of future growth for us. We are having active dialogue with the new administration’s transition teams and regulators, and we stand ready to provide central clearing, transparent reporting, and anything else that the markets and regulators require.”

NYSE Euronext is clearing European CDS trades through Bclear--the confirmation and processing platform of its Liffe derivatives subsidiary--which feeds trades to LCH.Clearnet. Liffe and LCH.Clearnet announced Dec. 23 that they had received exemptions from the Securities and Exchange Commission to let U.S. users clear through the system. When NYSE Euronext takes its derivatives clearing in-house with the launch of LiffeClear, slated for the second quarter, it will end its relationship in that sector with LCH.Clearnet, which will continue to manage the guarantee fund for Liffe derivatives.
Launch Imminent for NYSE’s U.S. CDS Clearing Service
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