CME, ICE Could Benefit from Regulation of CDS Market

It is clearly evident that the elephant in the room for the domestic and global economies is the $60 trillion unregulated credit default swaps (CDS) market. Warren Buffet once referred to these securities as "financial instruments of mass destruction." 

No one knows the final outcome of regulatory intent, but two companies that could potentially benefit from such regulation are the Chicago Mercantile Exchange (CME) and the Intercontiental Exchange (ICE). Both have the infrastructure to accomodate such massive trading volume and facilitate the SEC’s regulation of the CDS market. 

Investors would be well advised to monitor both of these names for further development as it has bullish implications not only for these two stocks but the stock market in general.

Disclosures: None