CBOE, CME and Eurex race to launch first exchange-traded credit derivatives

The Chicago Mercantile Exchange has announced its credit index event contracts will start trading on May 6, subject to regulatory approval, making them the first exchange-traded contract on a US credit derivative index.

The Chicago Board Options Exchange has announced it will launch five to 10 credit default options contracts during the second quarter of 2007. The options will pay out on a credit event in approximately 40-50 companies in the automotive, parts suppliers and home-building industries. These products will be followed by credit default basket options to be launched later this year. (See: CBOE prepares to launch credit default options)

Eurex’s exchange-traded futures contract, based on the iTraxx Europe five-year credit default swaps (CDS) index, is still on track for a March 27 launch, making it the first exchange to launch a credit derivatives futures contract. (See: Exchanges prepare to launch credit default swap futures contracts)