ICE to Launch Index CDS Futures in May
(This article was originally published Friday.)
By Katy Burne
IntercontinentalExchange Inc. ( ICE ) said it will launch credit-default swap futures in May, potentially opening up the clubby corner of the derivatives markets to retail and other new investors.
The creation of a successful CDS futures index could help revive parts of the credit-derivatives market, where outstanding volumes have fallen to $26.9 trillion as of last year, less than half their peak of $58 trillion in 2007.
Credit-default swaps, or CDS, function like insurance for nonpayment on bonds and loans. The exchange operator last year transitioned the bulk of its energy swaps to more-standardized futures.HT: DealBreaker
ICE already dominates the clearing of credit-default swaps in the U.S. and Europe and owns broker Creditex. Niamh Alexander, analyst at Keefe Bruyette & Woods, estimates 2014 net revenue from the company's CDS futures to be $73 million, based on a forecasted average of $35 billion daily traded volume in its first full year....MORE
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Wall Street Hears There May Be Credit Default Swap Futures in Chicago
From DJ's eFinancial News:
CME weighing credit default swap futuresCME Group is looking to introduce futures tied to credit default swaps, people familiar with the talks said, a move that would put the Chicago exchange operator in direct competition with rival IntercontinentalExchange....
