December 23, 2008 / 6:04 AM / 10 years ago

CME in talks with dealers on CDS platform- WSJ

Dec 23 (Reuters) - Chicago Mercantile Exchange parent CME Group Inc (CME.O) is in advanced discussions with six dealers to take equity stakes in its credit default swaps (CDS) trading and clearing platform, the Wall Street Journal said.

CME could not be immediately reached for comment by Reuters.

CDS are over-the-counter contracts that insure against the default of debt issuers.

CME’s rival IntercontinentalExchange Inc (ICE.N) has said it expects to clear CDS by the end of the year.

Regulators have stepped up pressure for a central clearing system for the $45 trillion CDS market, blamed as a major contributor to the current financial crisis, following the demise of big CDS issuers such as Lehman Brothers LEHMQ.PK and American International Group (AIG.N). (Reporting by Ajay Kamalakaran in Bangalore; Editing by Lincoln Feast)

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