Clearing house for derivatives back on the agenda

Widespread uncertainty over counterparty risk, crystallised by the collapse of Bear Stearns, has prompted dealers to resurrect talks aimed at setting up a clearing house for credit derivatives

A group of dealers hoping to avoid the systemic implications of counterparty risk are working with the Clearing Corporation on the establishment of a central clearing house for certain credit derivatives products.

Discussions on the establishment of a central clearing house for derivatives products have taken place at various stages in the past 20 years. And with concerns heightening over counterparty risk in the wake of the Bear Stearns collapse, dealers are again contemplating a central