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CME Group and Citadel Investment Group Unveil CDS Clearing Platform Plans

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Originally appeared in MiFID Monitor

Following the announcement that they would be launching a credit default swap trading and clearing platform in November, Chicago Mercantile Exchange (CME) Group and hedge fund Citadel Investment Group have revealed more details about their joint venture. According to both parties, the electronic platform will act like an exchange and allow participants to trade CDS indexes and swaps anonymously.

CME would also provide a central clearing house for trades on the platform and those traded off the platform via dealers. It is hoped that the participation of Citadel as a hedge fund group will encourage other buy side firms to trade and clear on the new platform. As yet there has been no indication of which valuations providers will be chosen to act as pricing data sources.

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