News Release

CME Group Announces Dealer Founding Members for CDS Initiative

Thu Dec 03 2009

CHICAGO, Dec. 3 /PRNewswire-FirstCall/ -- CME Group, the world's largest and most diverse derivatives marketplace, today announced the initial group of dealer founding members supporting its credit default swap (CDS) initiative. The new members will be Barclays Capital, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, and UBS, each of whom has executed a non-binding term sheet with respect to the CDS initiative.

The dealer founding members join the buy-side founding members, AllianceBernstein, BlackRock, BlueMountain Capital Management, Citadel, the D. E. Shaw Group and PIMCO, in supporting CME Group's OTC CDS initiative. As part of that support, the dealer founding members, in addition to the buy-side founding members and other buy-side firms, are planning to participate in a pre-launch program scheduled to begin clearing CDS by December 15, 2009, subject to necessary regulatory approvals. In addition, Bank of America Merrill Lynch, Nomura Group, and Royal Bank of Scotland will become CDS clearing member firms and intend to participate in the pre-launch program.

"Thanks to the collaboration and committed effort of so many key buy-side and dealer founding members, we expect to begin clearing CDS contracts by December 15th," said Terry Duffy, Executive Chairman, CME Group. "We believe that between our product coverage and our strategic alliance with buy-side and dealer firms, CME Group will provide the most comprehensive CDS clearing solution."

"Today's announcement represents a landmark industry milestone in bringing together a broad range of prestigious buy and sell side participants to support our clearing solution for credit default swaps," said Craig Donohue, Chief Executive Officer, CME Group. "CME Group believes that our solution, which was jointly developed with both our buy and sell side founding members over many months of effort, will be the strongest and most effective CDS clearing solution. Our solution will provide a number of benefits including immediate processing of CDS trades submitted for clearing, an extensive range of products to clear including single names and indices, a comprehensive and transparent risk management framework, the security of an industry leading financial safeguards package, and the leveraging of an established regulatory framework to protect customer collateral and positions."

CME's clearing solution is based upon cleared CDS products that will mirror OTC market conventions and practices, including the incorporation of ISDA Credit Derivatives definitions, adherence to decisions of the ISDA Determinations Committee and cash settlement to the ISDA auction settlement price, and incorporates the proven benefits of CME Group's clearing model.

Additional information can be found at

About CME Group

As the world's largest and most diverse derivatives marketplace, CME Group ( is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets.

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago. NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at

Statements in this news release that are not historical facts are forward- looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. Detailed information about factors that may affect the performance of CME Group may be found in its filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, which is available in the Investor Relations section of the CME Group Web site. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.



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