source
Following last year's market turmoil, U.S. regulators urged creation of clearinghouses to stabilize the market in credit default swaps, a particular type of derivative valued in trillions of dollars.
Exchanges have already begun to jockey for business clearing OTC derivatives.
The Intercontinental Exchange (NYSE:ICE - News) and CME Group Inc (NasdaqGS:CME - News), which runs the Chicago Mercantile Exchange, are the two main contenders in the race, with ICE benefiting from support from large dealers that own a stake in the company.
The ICE began clearing credit default swaps in March.
CME and ICE will benefit the most from the proposed changes, if they become law, said Fox-Pitt Kelton Cochran Caronia Waller analyst Edward Ditmire in a research note.
"Both own U.S. clearinghouses and have significant over-the-counter experience," Ditmire wrote, adding that the CME is the "biggest winner".
CME was upgraded this morning.
Following last year's market turmoil, U.S. regulators urged creation of clearinghouses to stabilize the market in credit default swaps, a particular type of derivative valued in trillions of dollars.
Exchanges have already begun to jockey for business clearing OTC derivatives.
The Intercontinental Exchange (NYSE:ICE - News) and CME Group Inc (NasdaqGS:CME - News), which runs the Chicago Mercantile Exchange, are the two main contenders in the race, with ICE benefiting from support from large dealers that own a stake in the company.
The ICE began clearing credit default swaps in March.
CME and ICE will benefit the most from the proposed changes, if they become law, said Fox-Pitt Kelton Cochran Caronia Waller analyst Edward Ditmire in a research note.
"Both own U.S. clearinghouses and have significant over-the-counter experience," Ditmire wrote, adding that the CME is the "biggest winner".
CME was upgraded this morning.