INTERNATIONAL: CME Group Enters into Partnership to Develop Credit Spread Futures

Monday July 22 2013

CME Group, the world’s leading and most diverse derivatives marketplace, and trueEX, LLC, the first CFTC-regulated electronic exchange for swaps, today announced a non-binding agreement to forge a strategic partnership to develop trueEX Credit Spread Futures contracts based on the newly created S&P Indices that would be distributed to the global futures markets on CME Globex, subject to a final agreement.

Under the strategic arrangement, CME Clearing will also provide trueEX with clearing services for these products. The product set will include trueEX Credit Spread Futures contracts based on the newly-launched S&P Credit Spread Indices. On April 10, 2013, S&P Dow Jones Indices launched three new credit spread indices; the S&P 150 Investment Grade Credit Spread Index which is a combination of the Corporate Credit Spread Index (S&P 120 Credit Spread Corporate Index) based on the largest 120 investment grade issuers of long-term debt outstanding in the S&P 500, and the Financials Credit Spread Index (S&P 30 Credit Spread Financials Index) based on the largest 30 financial investment grade issuers of long-term debt outstanding in the S&P 500. The trueEX Credit Spread Futures contracts will be cleared in the same clearinghouse as the S&P Equity 500 Futures Contracts.

Click on the above link for more details