Derivatives regulation: Central counterparty clearing goes mainstream

	estimated value of CDS market

The CME has signed up the main dealers in the credit derivatives market to its clearing service, adding some heat to the competition to tap into a market estimated to be worth $35 trillion. In doing so, CME is preempting legislation before politicians in Washington DC and Brussels that is expected to allow exchanges to break into a market that has been unregulated and effectively ring-fenced to competition by global investment banks.