As we move toward the end of the third quarter of 2009, the economy has shown increasing signs of stabilization. One closely watched measure of risk and market liquidity, the LIBOR/OIS spread, has consistently trended downward, indicating greater confidence in credit markets. A decrease in volatility in many asset classes further points to growing economic steadiness.

While it may be premature to determine the final outcome, it is not too soon to begin looking at the impact the recent financial concerns will have on financial markets going forward. The crisis has highlighted pressure points in the regulatory framework that governs financial markets. CME Group broadly supports the Obama administration's efforts to ensure that U.S. financial sector maintains high standards of integrity, safety and soundness for all participants.

In recent months, much of the focus in Washington, D.C. has been on a move toward greater use of central counterparty clearing services to provide both sides of a transaction with financial safeguards in over-the-counter (OTC) markets. CME Group has taken a leadership role in this area through CME ClearPort, a set of flexible clearing services open to OTC market participants that substantially mitigates counterparty risk and provides neutral settlement prices across asset classes. CME ClearPort is growing beyond its roots in the energy market and is rapidly expanding into new asset classes such as agricultural commodities.

This issue's cover story, "Stepping Out of Uncertainty," examines CME ClearPort and the role that this service can play across multiple asset classes. Also, with the assistance of two market experts, we take a look at the near-term and mid-term outlooks for the global economy, as well as for the interest rate environment.

While we cannot predict the timing of the economic recovery, we believe that our markets and products continue to demonstrate their value in all financial environments. And we believe that further improvements in the economy have the potential to generate increased hedging and risk management activity.

 

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