Q&A: Laurent Paulhac & Robin Ross

Q: What structural weaknesses and inefficiencies in the processing infrastructure for CDS trades were unveiled by the credit crisis?

A: The infrastructure lacks the capacity to adequately to cope with the levels of trading that we have seen. The existing settlement process has been overwhelmed: there is an unacceptable backlog in trade processing and high levels of error caused by a reliance on a non-automated settlement process.

Liquidity has been another cause for concern: the credit markets wer

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