The collapse of Lehman Brothers a year ago has given the derivatives market a hard shove in the direction of central counterparty clearing. That has opened up great opportunities for CCPs – but also given them some tough challenges, like competing to clear CDS when the investment banks seem to have opted in a herd for one provider. But Kim Taylor, president of CME Clearing House, tells Colin Packham she is confident CME will thrive in the newly competitive world of clearing.
CME Group has committed to introducing a new US clearing house for credit default swaps – what’s the latest on that initiative?
I don’t think anything has materially changed from what we have said before. We have our regulatory approvals, we have our systems ready. We are working with dealers and buy side customers to ensure the readiness of market participants to use the service. ...