CNMEX Opens Credit Default Swaps and Focuses Solution on Clearing Services

Online, January 21, 2010 (Newswire.com) - CNMEX , announced that its credit default swap (CDS) will be restructured as a strategic program targeted at providing clearing-only services for the nearly $12 trillion credit default swap (CDS) market, effective immediately. Key features will be carried forward in the clearing-only service, including state-of-the-art trade booking and legacy trade migration facilities. CNMEX plans to announce the launch of the clearing program in the weeks ahead.
"We remain committed to bringing stability and transparency to the CDS market, while further enhancing confidence in the financial marketplace," said Deng Lau Chang, PR Officer for (CDS) initiative, CNMEX. "Over the past several months, we have been working closely with all market participants. As a result of this collaborative process, we have refocused our offering to provide clearing-only services. Both buy-side and sell-side participants have expressed an interest in continuing to execute their CDS transactions the same as they do today, but with the added benefit of central counterparty clearing."
"With the increasing collaboration of Exchange members from both the buy- and sell-side, we are confident our offering remains the strongest and most effective CDS clearing solution available," added Mr. Lau Chang. "Our solution offers point of execution clearing of CDS trades, the greatest breadth of products to clear which includes single name CDS, a comprehensive and transparent risk management system, the security of our approximately $ 12 billion financial safeguards package, and an established regulatory framework to protect customer positions and offer margining efficiencies."