European committee aims to find a solution for CDS clearing
BRUSSELS – The EU internal markets commissioner Charlie McCreevy has welcomed the outcome of the first meeting of the working group he set up to find a solution to clearing credit default swaps (CDS). The group’s objective is to set up a clear roadmap on how to ensure CDS are cleared through a central clearing counterparty by the end of this year. All participants today confirmed this timing was reasonable.
The group, composed of representatives from the industry and regulators, and chaired by the European Commission, has agreed that technical work would proceed in subgroups to deal with several issues rated to CDS clearing. These issues include which CDS types would be cleared by when; which standards should apply to central clearing counterparties to ensure their robustness; how to ensure coherence with work taking place in the US; how to deal with price reporting; and how to ensure adequate information and supervision by regulators.
Following technical preparation, the group is scheduled to meet again in early December.
In a statement made in October, as well as promising to set out a CDS clearing roadmap, McCreevy promised to take a “systematic look at the derivatives markets in the aftermath of the lessons learned from the current turmoil”, suggesting greater regulation of the market will be forthcoming.
More on Exchanges
China exchange developing technique to reduce margin requirements
Significant global players not on list to join Shanghai Clearing House
Taiex futures set to be followed by other products
New equity options on two exchanges
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.