CME Group will launch cleared interest-rate swaps on its subsidiary Swapstream in the first quarter of 2008, CME spokeswoman Pamela Plehn said. It will be the first interest-rate swap in the over-the-counter market to include central counterparty clearing, which will be provided via CME Clearing360.
The first swaps, which will be marked to market daily, will include forward interest-rate swaps denominated in U.S. dollars and euros with maturities out to 30 years, as well as short-term overnight index swaps. The swaps will include automatic netting of positions that can be offset, the use of the CMEs Standards Portfolio Analysis of Risk methodology and favorable capital daily marked-to-market treatment.