Q&A: Laurent Paulhac & Robin Ross
After the Chicago Mercatile Exchange's recent acquisition of market data provider CMA, Laurent Paulhac of CMA and Robin Ross of CME Group talk about how the CDS market may change in the aftermath of the credit crisis
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
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