News Release

CME Group and CMDX Announce Licensing Agreements for Markit's CDS Indices

Wed Mar 11 2009

Agreements enable centralized clearing and execution of credit default swaps on Markit Credit Indices

 

CHICAGO, March 11 /PRNewswire-FirstCall/ -- CME Group and CMDX have signed agreements with Markit, a financial information services company, to license Markit's industry-leading credit default swap indices and its Markit RED (Reference Entity Database) identifiers. All agreements with Markit are effective immediately.

 

CME Group will offer clearing of credit default swaps based upon the Markit CDX and Markit iTraxx indices, the two highest-volume families of CDS indices. Markit CDX indices cover North America and Emerging Markets, while Markit iTraxx indices cover Europe and the Asia-Pacific region. Market participants use Markit's CDS indices to hedge credit risks and/or express a credit view on a basket of reference entities.

 

The licensing agreements with Markit will allow Markit RED users to identify their single name CDS trades and reference entities on the CME Clearing and CMDX platforms, facilitating participants' migration of new and existing CDS contracts to CME Clearing. CMDX is an open-architecture electronic trading, trade booking, and migration/clearing-only platform for credit default swaps open to all qualified commercial market participants. Trades executed, booked or migrated through CMDX are processed directly to CME Clearing for multilateral netting and centralized clearing.

 

The Commodities Futures Trading Commission and the Federal Reserve Bank of New York completed their pre-launch reviews of the CMDX platform and CME Clearing on December 23, 2008.

 

 

About CME Group

CME Group (www.cmegroup.com) is the world's largest and most diverse derivatives exchange. Building on the heritage of CME, CBOT and NYMEX, CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on trading floors in Chicago and New York. By acting as the buyer to every seller and the seller to every buyer, CME Clearing virtually eliminates counterparty credit risk. CME Clearing also offers financial safeguards, with market leading customer protection, to help mitigate systemic risk, providing the security and confidence market participants need to operate, invest and grow. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investment products such as weather and real estate. CME Group is listed on NASDAQ under the symbol "CME."

 

About Markit

Markit is a financial information services company with more than 1,100 employees in Europe, North America and Asia-Pacific. Over 1,500 financial institutions use our independent services to manage risk, improve operational efficiency and meet regulatory requirements. For more information, see www.markit.com.

CME-G

SOURCE: CME Group

Web site: http://www.cme.com/

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