CME targets credit derivatives market

The Chicago Mercantile Exchange (CME) plans to launch credit derivatives products early next year, with a view to capturing a share of a market that has largely been the preserve of over-the-counter dealers.

The CME has applied to list credit event futures, which are triggered by the same events as standard credit default swaps. The CDS market more than doubled in the year to June 2006 to reach $26 trillion in notional outstanding, according to the International Swaps and Derivatives Association

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