Chicago-based CCorp said in December last year that it had completed a major restructuring that transferred ownership of the organisation to 17 stockholders. The group's backers now consist of 12 of the biggest global dealers - including some of the largest credit derivatives dealers - along with three leading inter-dealer brokers, derivatives exchange Eurex and Markit Group.

The group said it would work to expand its product line to include a centralised clearing facility for a number of OTC derivatives products.

CCorp began working on developments with the DTCC earlier this year that would see it act as central counterparty for credit default swap transactions registered within DTCC's Trade Information Warehouse.

Now in today's statement CCorp says the initiative is targeted to launch in third quarter of 2008.

"The agreement with DTCC will allow CCorp members to utilise CCorp as the central counterparty (CCP) guarantor for OTC contracts in credit derivatives while continuing to utilise the Warehouse as the 'golden' record for net open positions and for post trade event processing," says CCorp in the statement.

Michael Dawley, CCorp chairman, says the new facility will "improve capital efficiency, increase regulatory transparency, lessen direct counterparty risk and reduce systemic risk relating to the multi-trillion dollar market in credit default swaps".

Initially the new service will support only CDX North American high yield and investment grade indices. CDS products such as iTraxx indices, index tranches, and single name products are scheduled for subsequent roll outs throughout 2008 and 2009.

In the initial phase, joint CCorp and DTCC Warehouse members whose OTC credit derivative trades are stored in the Warehouse can elect to replace their bilateral agreements with a new CCP guaranteed trade backed by the CCorp.