CME Group, the world’s largest and most diverse derivatives exchange, announced that CME Group ceo Craig Donohue will discuss with U.S. Senators today the credit derivatives markets and central-party clearing solutions.
"Credit derivatives are an extremely useful innovation that permits dispersion and realignment of certain risks. However, the market and the policies, practices and regulatory environment that impact it have not kept pace with the rapid growth in trading. These markets must mature and evolve," said Donohue. "We believe that an exchange model, with transparent, centralized, multilateral trading and central counterparty clearing, would reduce systemic risk across the financial system and enhance certainty and fairness in credit markets."
The U.S. Senate Subcommittee on Securities, Investment and Insurance of the Committee on Banking, Housing and Urban Affairs is holding the hearing, "Reducing Risks and Improving Oversight in the OTC Credit Derivatives Market," at 2 p.m. E.T. Wednesday, July 9, at the Dirksen Senate Office Building. For a copy of Craig Donohue’s testimony, which will be available Wednesday afternoon, please go to http://www.cmegroup.com/. For a Webcast of the hearing, please go to http://banking.senate.gov/public.
