Banks move to central clearing across asset classes

Much of the over-the-counter derivatives market will shift towards central clearing houses by next year, as the collapse of Lehman Brothers on September 15 forces banks to reassess counterparty risk posed by other dealers.

Moves are already well under way to launch a central counterparty for credit default swaps (CDSs), with four groups - Eurex, NYSE Euronext, the CME Group in conjunction with Chicago-based Citadel Investment Group, and the Clearing Corporation in partnership with the