CME Group and CMDX have signed agreements with Markit to license its credit default swap indices and its RED (Reference Entity Database) identifiers.
CME Group will offer clearing of credit default swaps based upon the Markit CDX and Markit iTraxx indices, the two highest-volume families of CDS indices.
The licensing agreements with Markit will allow Markit RED users to identify their single name CDS trades and reference entities on the CME Clearing and CMDX platforms, facilitating participants’ migration of new and existing CDS contracts to CME Clearing.
CMDX is an open-architecture electronic trading, trade booking, and migration/clearing-only platform for credit default swaps. Trades executed, booked or migrated through CMDX are processed directly to CME Clearing for multilateral netting and centralized clearing.
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