By Jonathan Spicer
NEW YORK, Dec 15 (Reuters) – CME Group Inc began clearing U.S.-based credit derivatives on Tuesday, aiming to capitalize on a government push to safeguard a private market blamed for exacerbating the financial crisis.
The launch of CME’s clearinghouse for credit default swaps (CDS) coincides with the date large dealers promised to offer clearing to their clients. It comes more than a year after the venture was announced, and more than nine months after rival IntercontinentalExchange Inc began clearing CDS.
CME, the world’s largest derivatives exchange operator, has from the beginning promoted its clearinghouse as one friendly to buyside firms, six of which are founding members. Citadel Investment Group was CME’s original partner.
“We really had nice, broad participation from founding partners, and from the other clearing members,” Laurent Paulhac, managing director of CME’s over the counter products and services, said of activity on the first day.
The company did not reveal trading volume. A spokesman said open interest will be published on Wednesday.