CFTC Vacates CME Clearing Europe Limited Registration as a Derivatives Clearing Organization

The canary in the coal mine:  the CME no longer wishes to be the clearinghouse for European derivatives.  If I were a holder of Greek credit default swaps, I would unload them before they turn into toilet paper--if they haven't already.  With the ISDA not acknowledging the 74% haircut in Greek bonds as a credit default "event", CDS holders basically own the equivalent of a life insurance policy of a corpse--only the coroner just declared the corpse a living and breathing entity.  So run along you bankers and hedge fund managers:  you hedged correctly, but we ain't paying out these insurance claims, because the patient ain't dead until we say it's dead. 

http://www.cftc.gov/PressRoom/PressReleases/pr6208-12

Here's the problem:  the patient is dead.  And so it will be with the neighboring patients on life support as well.