The new venture for clearing credit default swaps - (CDS) developed in conjunction with hedge fund monolith Citadel Investments - has been postponed due to a lack of equity stakeholders.
The CME, which received long-awaited regulatory approval from the Securities and Exchange Commission (SEC) to start clearing CDS contracts last week, is still looking to attract a number of key liquidity providers to the new venture. The Chicago-based firms, which had initially hoped to begin clearing CDS contracts in November 2008, expect to launch the platform in “coming weeks,” a spokesperson said on Thursday.
