CBOT will launch a credit default swap index future that simplifies some of the mechanics of the over-the-counter (OTC) market while offering the advantages of an exchange-traded product. The contract’s underlying reference index will include 50 names selected by a series of rules - a departure from the OTC market where reference securities are added or subtracted according to the administering consortium. The new contract offers a smart combination of design choices and is the most promising structure to date for an exchange to tackle corporate bond credit indices.

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 - Bear Stearns covers the CBOT CDS Futures launch - 06.05.2007