Shareholders, including JPMorgan Chase &Co., Goldman Sachs Group Inc. and UBS AG, received $39 million in cash from Intercontinental as well as Clearing Corp.`s cash fund and a 50-50 incentive agreement with Intercontinental on swap liquidation revenues. A credit default swap (CDS) is a financial exchange agreement that the seller of the CDS compensates the buyer in the event of a debt default (by the debtor) or other credit event.  That is, the seller of the CDS insures the buyer against the loss of a reference asset. The buyer of the CDS makes a number of payments (the CDS “fees” or “spread”) to the seller and can, in return, expect a payment in the event of default of the asset. Before the changes went live, Sivan Mahadevan, a derivatives analyst at Morgan Stanley, one of the proponents of IntercontinentalExchange`s subsidiary, ICE Trust in New York, founded in 2008, claimed that in 2005, for example, a hypothetical investment fund bought bonds from Washington mutual companies and decided to hedge its commitment by buying CDS from Lehmans Brother.