CME and Citadel are to launch a combined CDS trading platform and counterparty clearing house. Derivatives exchange CME will provide the central counterparty in the form of its CME Clearing arm.
Hedge fund Citadel and CME have offered up to 30% of the equity in the venture in exchange for certain trading privileges, expected to consist of a reduction in trading fees.
The service will provide standardised contracts with fixed coupons for CDS indices and their underlying single-name components. CME