Bank names obstruct single-name CDS clearing
Ice is “working through” wrong-way risk issues, may need to revamp auctions
The dangers of clearing single-name credit default swaps (CDSs) on bank members of a central counterparty (CCP) are impeding efforts to voluntarily clear the product – a bid by the industry to bolster dwindling liquidity – and it could obstruct mandatory clearing of the product, credit traders warn.
One of the threats is that a clearing member might inherit contracts written on itself in the event
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