Single-name CDS clearing held up by fears over SEC regime


Fears that margin requirements for single-name credit default swaps (CDSs) will leap in December, when temporary rules for buy-side firms expire, is keeping clearing volumes low, according to sources at three US hedge funds. The biggest US CDS clearer, Ice Clear Credit, has so far handled just $60 million in single-name CDSs from the buy side, compared to roughly $2 trillion in client index trades.

The rules were introduced on June 7 by the US Securities and Exchange Commission (SEC), replacing

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