Chicago Mercantile Exchange To Run Credit Default Swaps Market

Regulators expect to give the go-ahead to CME Group Inc. and rivals to clear contracts in the $47 trillion market for credit default swaps by the middle of next month, a Securities and Exchange Commission official told members of Congress today.

The SEC, the Commodity Futures Trading Commission and the Federal Reserve Board need until "roughly the middle of December" to jointly review plans by the CME and others to ensure they adequately protect against risks posed by guaranteeing the contracts, said Erik R. Sirri, Director of Division of Trading and Markets, Securities Exchange Commission, Washington, D.C.

In October, CME teamed up with Citadel Investments Group to launch a market for swaps.

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Comments

[PhilipTaylor]

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