Clearing a path to lower op risk

The creation of a central counterparty clearing house for credit derivatives has been on the cards for some time and this year's market turmoil means it will be high on regulators' agendas. But not everybody thinks such a development is necessary ..

It's more than a year since the derivatives industry began talking seriously about creating a central counterparty (CCP) clearing house for credit derivatives. The question now is whether it will take another year for the industry to implement a CCP clearing house, given the traumatic events of September, which turned the entire industry on its head in less than two weeks. Furthermore, is such a development necessary, given the new era of big commercial banks and the apparently orderly unwinding