Silent running: on the trail of the SEC’s missing CDS rules

The mysterious fate of the apocryphal 2013 clearing proposal, and what comes next

As astonishing as it may seem, almost a decade after the financial crisis, the single-name credit-default swap (CDS) market remains largely unregulated in the US.

For a certain class of non-bank counterparty, the product that brought American International Group to its knees – and threatened to capsize the entire US economy by destroying the company’s ability to honour hundreds of billions in insurance commitments – can still be traded without adhering to even the most rudimentary of trading pr