Project by Praveen P. Mishall
Welingkar Institute
The main details of the service are – Novation within a Eurozone legal framework LCH.Clearnet SA will act as the CCP (position management & netting, risk management) ISDA standardized CDS contracts will be cleared ISDA will be the authority regarding credit events and related auctions Markit will be used for pricing and product reference data DTCC Trade Information Warehouse will be the central registrar LCH.Clearnet SA will receive for clearing trades registered as golden records in the DTCC Trade Information Warehouse.
CME Group Inc/ Citadel Investment Group (CMDX): Citadel Investment Group and the CME Group (as clearing house) have partnered in creating a clearing and exchange solution for credit default swap market, called the Credit Market Derivatives Exchange, or CMDX. CMDX is an open-architecture electronic trading and migration platform for credit default swaps (CDS) open to all qualified commercial market participants. Trades executed, booked or migrated through CMDX are processed directly to CME Clearing.
The main details of the service are – The CMDX platform has an open architecture, enabling market participants to execute or book CDS trades through party-to-party negotiation, IDB brokered, CMDX Request for Quote (RFQ) platform, or other electronic matching venues. CME leverages its position as world-leading diversified clearing house (with ~7B guarantee fund available for CDS), versus other proposals’ intention to create new clearing houses with new funding isolated on CDS risk. CMDX provides a Migration Utility to migrate existing bilateral over-the-counter (OTC) contracts to standardized, centrally cleared contracts. CMDX and CME Clearing intend to support the trading and clearing of the most extensive CDS product set in the industry, covering 75% of index and single name notional value on day 1.
CDS | Central Counterparty Settlement
MMS 2008-10
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