By Dow Jones Business News, September 18, 2013, 09:49:00 AM EDT
By Jacob Bunge
CME Group Inc. ( CME ) said Wednesday it submitted an application to operate a platform for trading swap contracts,
adding the world's largest futures exchange operator to the slate of companies jockeying for business under new
CME filed an application with the Commodity Futures Trading Commission to register a so-called swap-execution
facility, new platforms outlined under the 2010 Dodd-Frank financial law to boost transparency in the $633 trillion
global market for derivatives traded off-exchange.
Regulators in the U.S., Europe and Asia are backing efforts to shift trading in instruments like credit derivatives
and interest-rate swaps after privately-traded derivatives contracts markets caught blame for exacerbating the financial
crisis in 2008. In the U.S., part of that effort involved setting up such swap-execution facilities, regulated platforms
for trading such contracts.
CME said Wednesday its swap-execution facility, which requires CFTC approval to launch, would be available via its CME
Direct trading platform used for trading energy and metals contracts. The effort initially will focus on trading
commodity-linked swaps, though it may later add other financial products, CME said.
CME's move follows similar plans by major Wall Street brokers as well as rival IntercontinentalExchange Inc. ( ICE ),
which outlined in August a similar swap platform that ICE said would enable trading in credit derivatives linked to
North American and European companies and countries. ICE, which runs derivatives markets mainly focused on energy and
commodities, this fall aims to close a deal to acquire NYSE Euronext ( NYX ).
Write to Jacob Bunge at firstname.lastname@example.org
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