CME Group, has signed a licensing agreement with Standard & Poor’s to clear swaps on the S&P GSCI Excess Return Index designed for commodity markets.
The over-the-counter (OTC) product based on the index calculated by Standard & Poor’s will be accessible via CME ClearPort(R), scheduled to begin on 16 March following certification to the Commodity Futures Trading Commission.
“In this environment of financial uncertainty, more and more customers are looking at the benefits available in a centralized clearing solution to manage counterparty risks,” says Rick Redding, managing director of Products and Services, CME Group.
“The S&P GSCI is clearly the leading barometer for investment performance in the commodity markets,” says Alex Matturri, executive managing director, Index Services, Standard & Poor’s.
“Standard & Poor’s is excited to bring additional flexibility to the marketplace by licensing this closely followed benchmark to our longtime exchange partner, CME Group.”
L.D.