CME Group is again delaying its rollout of clearing plans for credit default swaps in Europe.
The U.S. exchange group and clearinghouse now plans to focus on OTC energy derivatives business. However, it is still expected to target European CDS contracts, a potentially lucrative $25 trillion market.
CME Group's CDS ambitions come amid a global crackdown on OTC derivatives business, which many are partially blaming for the 2008 financial crisis. It is expected that a new regulatory framework will borrow a page from exchange-traded standardized futures contracts and require centralized clearing for these products in the future.