Eurex in talks to sell CDS clearing stakes

Swiss-German derivatives exchange Eurex says it is in advanced talks to sell stakes in its forthcoming credit default swaps clearing house.

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Eurex in talks to sell CDS clearing stakes

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"We are in advanced dialogue with partners who have clearly articulated to us their decision to take stakes," Andreas Preuss, chief executive officer, told Bloomberg in an interview at the Futures Industry Association conference in Boca Raton, Florida.

Preuss said the firm is willing to sell as much as 90% of its venture to active market participants. Potential partners will be offered options that can be exchanged for shares in return for putting volume through the system.

Earlier this month, Eurex said it would concentrate its efforts on the European market and that the clearing house would be "technically ready" in the first quarter.

The importance of generating user support in advance of launch has been emphasised by the experience of Liffe, which has seen minimal volumes since launching its BClear platform in December.

Speaking at the Boca Raton event, Garry Jones, executive director of business development and strategy at Nyse Euronext says the firm has now signed 32 clients for the system and would pick up volumes later in the year.

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