CME nearing breakthrough clearing deal with banks, says FT

Financial Times reports today that the Chicago Mercantile Exchange Group is nearing a breakthrough deal with major banks to clear credit default swaps, citing people close to the negotiations. An agreement with some banks could be announced on Thursday, capping more than a year of discussions, says the article.

The CME is said to have been holding talks with Barclays Capital, Citi, Goldman Sachs, JP Morgan, Deutsche Bank, Morgan Stanley, UBS and Credit Suisse. FT was unable to ascertain how many of those banks would sign up with the CME, however.

The agreement is understood to be likely to specify 15 December as the launch date for clearing the first trades, meeting a deadline set by the CME.