Citadel Group Losing Race to Clear CDS Trades

Citadel Investment Group and CME Group recently teamed up to help the Treasury and guarantee Credit-Default-Swaps, but have been unable to find any customers to clear the trades.

Meanwhile, Intercontinental Exchange (ICE), Goldman Sachs Group (GS), JP Morgan (JPM) and several other banks have also teamed up in the CDS market and were able to clear $7.5 billion in trades last week according to Intercontinental Exchange.

Currently, most trades in the CDS market are inter-bank.

The federal push for guarantees in the Credit Default Swap market comes amidst the failure of Lehman Brothers last year and the forced injection of $100s of billions to AIG.

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