Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: Fed To Create a CDS Exchange


Strengthen your portfolio in good times and bad.


Reuters reports the New York Federal Reserve is planning to host a meeting with banks and institutional investors Tuesday in hopes of developing a central counterparty for the $55 trillion global credit default swaps market.

The Fed said in a statement that industry participants and regulators agreed that a "robust central clearing infrastructure" is needed for these OTC derivatives. "This will help reduce systemic risk associated with counterparty credit exposure and improve how the failure of a major participant would be addressed."

The Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE) are the companies in talks with the Fed in creating the CDS exchange, according to Reuters, although neither company has confirmed the report.

From the Bull Pen: Is a bank bottom near? Maybe. Maybe not. But those bulls looking for financial exposure can consider SVB Financial Group (SIVB). Note the impressive relative performance today, as well as for the past year. Bulls might be able to catch the stock on a pullback towards $55.

From the Bear Cave: Sticking with the exchange theme, bears can consider NYSE Euronext (NYSE). The stock could see a sharp rally in coming days, but should it fail at $40 resistance, we could see it retesting its low. Remember, this stock is still subject to short selling restrictions effective through 11:59 p.m. on October 8th.

Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter - 14 day FREE trial

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos