Liffe CDS will be available to the entire OTC trading community from 22 December 2008. The service will enable clients to process and clear over the counter CDS business via proven OTC derivatives service, Bclear.
Liffe launches Credit Default Swaps (CDS) on Bclear, an efficient and cost-effective CDS offering that combines the security of an exchange and clearing house with the flexibility enjoyed in the OTC market. To date, Bclear has processed almost 350 million contracts, with a notional value in excess of US $8,700 billion.
Liffe CDS contracts will be true CDS contracts, rather than futures or options and will initially be based upon Markit iTraxx Europe indices, the benchmark for European credit protection. The contracts will be launched on Markit iTraxx Europe (investment grade), HiVol and Crossover indices (series 8, 9 and 10) and have a 3, 5, 7 and 10 year contract maturity.
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