Undaunted by the stalling of NYSE Liffe’s effort to clear credit default swaps, Eurex says it is on track to offer central clearing of both index and single name CDS by the European Commission’s July 31 deadline.
Intercontinental Exchange, the out-and-out winner so far in the US market for clearing CDS, also plans to be ready for action in Europe by July 31.
This means that firms are likely to have a choice of two or three central counterparties (CCPs) with which to clear CDS – even though in the US, they have so far shunned the choice available to them and only used ICE’s solution.
In a deal struck with EU internal markets commissioner Charlie McCreevy in February, firms in the European CDS market, acting through two industry bodies, promised to adopt central counterparty (CCP) clearing for large parts of the market by...