Market solution to market problem

It appears we’re taking a few steps forward in the move to make the credit default swap market much more transparent. The Securities and Exchange Commission gave the go-ahead on Tuesday for

LCH.Clearnet Ltd to begin operating as a U.S.central counterparty for _credit default swaps._ The SEC approved some temporary exemptions that allow LCH to act as a counterparty, a move that

should help add transparency to the unregulated multitrillion-dollar credit default swaps market, SEC Chairman Christopher Cox said in a statement. "These conditional exemptions will

allow a central counterparty to be quickly up and running, while protecting investors through regulatory oversight," Cox said. That move represents a victory for NYSE Euronext , whose

London-based derivatives arm Liffe has partnered with LCH. But rival exchange CME is nipping at their heels. The Commodities Futures Trading Commission announced Tuesday that Chicago-based

CME had certified plans to provide clearing services for certain credit default swap contracts. CME still needs SEC approval. As you can imagine the Fast Money traders are all positive about

the developments. Perhaps Joe Terranova sums it up best. He says, “not only does it help in counter-party risk but it restores confidence to the market.” _For more comments from the traders

please watch the video_ ______________________________________________________ Got something to to say? Send us an e-mail at [email protected] and your comment might be posted on the

_Rapid Recap. _If you'd prefer to make a comment but not have it published on our website send your e-mail to . _Trader disclosure: On Dec. 24 th, 2008, the following stocks and

commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (AMR) And Is Short (AMR) Calls: Najarian Owns (MSFT): Najarian Owns

(XHB) Calls: Finerman's Firm Owns (AEO): Finerman's Firm Owns (MSFT) And (MSFT) Put Spreads; Finerman's Firm Owns (OIH) Puts; Finerman's Firm Is Short (IYR), (IJR),

(MDY), (SPY), (IWM), (BBT), (COF), (USO); Finerman's Firm Owns (ROH) Call Spreads; Karabell Owns (AAPL), (GOOG), (JPM), (CSCO)_ _Terranova Is Co-Portfolio Manager Of The Virtus

Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)_ _Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.: __Virtus Investment Partners Owns

More Than 1% Of (ABD), (ARE), (BIG), (OFC), (DLR), (EXR), (IGE), (MAC), (DBC), (DBV), (SKT), (UA), (CLB): Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights_