The entry of US exchanges into the credit default swaps clearing market continues to be delayed as the two front runners await regulatory approval.
US exchanges, Intercontinental Exchange and CME Group - together with Citadel Investment Group’s CMDX - declared intentions to offer clearing services to the CDS space in October. But US federal government efforts to approve clearing models by the end of 2007 have been derailed in recent weeks by the continued decline in many of the world’s financial markets.
European competition, however, has already emerged from NYSE-Euronext, which launched its solution on December 22 2007, while Eurex has said it will also offer central counterparty clearing to the CDS market within the next few months.
NYSE Euronext’s Liffe and LCH.Clearnet received approval from the Securities and Exchange Commission to offer their CDS clearing to US...