NYSE Euronext’s Liffe exchange believes its Bclear system is the best and most fully developed solution for clearing credit default swaps, and expects the industry to recognise that leadership in the coming weeks.
Liffe told Futures and Options Intelligence that its experience in clearing more than $7.5tr of over-the-counter equity derivatives on Bclear since 2005 gave it the credibility and track record to become the natural choice for CDS dealers.
“This is not an idea we’ve come up with in the last few weeks,” said John O’Neill, product manager for CDS at Liffe in London. “We have been looking at CDS seriously since last year. In July we became the first to announce concrete plans and our system will be ready to go live before the end of this year.”
The Bclear CDS system is being tested at the...