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First US-Based CDS Market Opens Its Doors

Law360 (March 9, 2009, 12:00 AM EDT) -- The first credit default swap clearinghouse in the United States began processing trades Monday, establishing a central, neutral counterparty between market participants for CDS index trades in an effort to boost transparency in the multitrillion-dollar market.

ICE US Trust LLC began processing and clearing credit default swap index transactions, and the trust, a unit of InternationalExchange Inc., said that it would look to add liquid single-name CDS in the coming months.

Single-name CDS are contracts linked to one named company, while index-linked CDS protect against credit...
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