Eurex Outlines CDS clearing proposal

Derivatives exchange Eurex has unveiled its proposal for establishing a central clearing system for the over-the-counter (OTC) credit markets which it says has “received support from European authorities”. Eurex will look to for joint venture partners to work with it to establish the central clearing platform. The Swiss German exchange says it will build a “consortium structure” that would provide for “shared governance and control”. Eurex says its two-stage platform will initially support single name and index-based CDS products. ISDA documented OTC derivatives will be added to the system in the first half of 2009, during the second phase of deployment. The clearing platform will be directly linked into the existing data warehouse infrastructure.

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