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I only pretend like I know something about economics--I just learned I have a 401(k) on Friday--but this seems like good news, for Chicago at least:
"But the launch of TCC's platform was delayed even before September's market disruption, opening the door for the CME [Chicago Mercantile Exchange], which says its joint proposal with Chicago-based hedge fund Citadel Investment Group can produce a CDS exchange by early next month."
"Miles Davis, head of capital markets at SMART UK, an advisory firm focused on the country's financial services sector, said the decision will boil down to who can handle the sheer volume of CDS. 'CME has a clear lead there,' he said."
One of the roadblocks towards calming the markets has been figuring out how much all this bad debt is actually worth, hence the rush. Apparently the big players want TCC, but just being able to get something working could give CME the advantage.