Portal combat
The first central clearing houses for credit default swaps were expected to start business in December, but regulatory hold-ups delayed the launch in the US and are also causing issues in Europe. Although four ventures are planned, some dealers expect only one or two to survive. By Peter Madigan
The start of December was supposed to see the realisation of a goal that began to take shape in 2007, but only gained real impetus with the loss of Bear Stearns in March 2008. That was the date set by dealers for the launch of centralised clearing of credit default swaps (CDSs) in the US, an initiative pushed hard by regulators and embraced by the major banks to reduce counterparty risk in the credit derivatives market.
Four central counterparty (CCP) platforms are in the works, with three
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