18 August 2017
Find out more

US regulators sign CDS counterparty clearing MoU

14 November 2008  |  7511 views  |  0 Washington, capitol hill

US regulatory agencies have signed a memorandum of understanding to jointly guide the development of central counterparty clearing arrangements for the credit default swaps market.

In a statement released late Friday, the President's Working Group on Financial Markets said its "top near-term OTC derivatives priority" is to oversee the successful implementation of central counterparty services for credit default swaps.

"A well-regulated and prudently managed CDS central counterparty can provide immediate benefits to the market by reducing the systemic risk associated with counterparty credit exposures," the statement said. "It also can help facilitate greater market transparency and be a catalyst for a more competitive trading environment that includes exchange trading of CDS."

The Working Group, which is chaired by the Treasury and includes the Federal Reserve, the Securities and Exchange Commission and the Commodity Futures Trading Commission, says it is reviewing proposals from several potential providers of counterparty services and that it anticipates that one or more CDS central counterparties will commence operations before the end of 2008.

IntercontinentalExchange, Nyse Euronext, Eurex and the CME have each submitted plans to develop a CCP for the $60 trillion CDS market. The PWG says the relevant regulatory authorities are assessing these proposals by conducting detailed on-site reviews of risk management and other key design elements.

In Europe, the European Commission last week set a year-end deadline for financial market participants to draw up a blueprint for the clearing of credit default swaps.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

ICE to acquire The Clearing Corporation as CDS clearing deadline nears

ICE to acquire The Clearing Corporation as CDS clearing deadline nears

30 October 2008  |  10175 views  |  0 comments
Eurex outlines CDS clearing proposal

Eurex outlines CDS clearing proposal

13 October 2008  |  10719 views  |  0 comments
CCorp unveils ICE alliance as Fed mulls CDS clearing proposals

CCorp unveils ICE alliance as Fed mulls CDS clearing proposals

10 October 2008  |  8359 views  |  0 comments
CME and Citadel invite industry to take stakes in CDS counterparty JV

CME and Citadel invite industry to take stakes in CDS counterparty JV

07 October 2008  |  7532 views  |  0 comments
CCorp says CDS clearing counterparty will launch by year-end

CCorp says CDS clearing counterparty will launch by year-end

29 September 2008  |  5792 views  |  0 comments
TriOptima claims credit as CDS backlogs recede

TriOptima claims credit as CDS backlogs recede

25 September 2008  |  6227 views  |  0 comments
Liffe eyes over-the-counter CDS market

Liffe eyes over-the-counter CDS market

07 July 2008  |  9946 views  |  0 comments
CDS banks promise to cut backlogs

CDS banks promise to cut backlogs

06 October 2005  |  7414 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.niceactimize.comvisit www.dorsum.eu

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
7408 views comments | 21 tweets | 22 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7239 views comments | 19 tweets | 23 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
5980 views 1 | 5 tweets | 3 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
5849 views comments | 10 tweets | 7 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
5805 views comments | 11 tweets | 9 linkedin