SEC in wait-and-see mode on CDS clearing mandate

Industry sources that have met with the agency claim it has “no plan” for mandate

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Sources say the SEC is watching the market before issuing a mandate. Photo: Shutterstock/Adam Przezak

The US Securities and Exchange Commission (SEC) has no near-term plans to issue a long-awaited mandate for the clearing of single-name credit default swaps (CDS) in the US, according to four sources who have met with the agency in recent weeks.

Market participants see central clearing as a way to help revive the product – by reducing capital and funding requirements for dealers – and large buy-side firms recently pledged to start clearing voluntarily. Sources say the SEC now appears to be

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