Liffe, the international derivatives business of the NYSE Euronext Group, is planning to launch Credit Default Swap (CDS) contracts on Bclear in the final quarter of 2008.
Liffe CDS contracts will be based on the Markit iTraxx European indices.
Liffe CDS contracts on Bclear will combine the security of central counterparty clearing with the flexibility that OTC market participants demand, according to NYSE Euronext. Pre-negotiated trades that are agreed off exchange will be booked into a proven OTC clearing solution.
We are pleased to announce the launch of CDS contracts on Bclear,” says Garry Jones, executive director of business development and strategy at Liffe. “Liffe is the first exchange to work with the market by launching CDS contracts rather than credit futures or options, and by allowing business to be pre-negotiated and booked into a secure exchange and clearing house environment.”