CDS: Fitting into the framework

Fitting into the framework

The passage of the Dodd-Frank financial reform act on July 21 has catapulted the north American credit derivatives market into a new quantum reality, where the uncertainty principle rules. Although overarching in scope, the legislation is deliberately short on detail, particularly in relation to the workings of the OTC market.

The new joint regulators of that market, the Securities and Exchange Commission and the Commodity Futures Trading Commission, have embarked on a frantic period of rule maki