Peterffy says plan by CME to guarantee credit-default swaps could put some at risk

The title of your thread is quite misleading. He says it would be at risk from CME Group proposal for clearing credit-default swaps, which has not yet been adopted. You might want to clarify this point.
 
Quote from brocklanders:
The title of your thread is quite misleading. He says it would be at risk from CME Group proposal for clearing credit-default swaps, which has not yet been adopted. You might want to clarify this point.
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It will be adopted, in one form or another, at CME at ICE or elsewhere. The Fed is supporting this initiative. I would prefer a separate clearinghouse for futures and credit swaps, I don't want to be worried about clearinghouse default risk.
 
I agree with you. The ICE plan looks better than CME due to the separation of clearinghouses. Hopefully they will choose the conservative approach and keep it separate from futures. Why tempt fate and anger the risk gods? CME Group is getting too big for its britches with this proposal I think.
 
I think Peterrfy is right. Mixing CDS garbage with futures is an outrage.

Traders should demand the CME keep that excrement away from their futures account.
 
How's this for a plan...

Let everyone who's involved in CDS's take their lumps. If in doing so, the effects spill over to innocents (who did not participate in CDSs), support them and bail out as necessary.

Don't the foolish and aggressive DESERVE to suffer the consequences before FORCING others to reimburse them for their stupidity and greed?
 
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