Buy-side CDS clearing 'not really happening'
Despite regulatory calls for buy-side clearing of credit derivatives, few client trades are being cleared.
In June 2009, major dealers made a commitment to the Federal Reserve Bank of New York to give dealer clients access to clearing for credit default swaps (CDS) in the US by December last year. The December 15 deadline was met by both the Chicago Mercantile Exchange (CME) Group and Ice Trust, the credit derivatives clearing arm of the Atlanta-based Intercontinental Exchange. Both firms are vying to clear CDSs in the US.
However, work to make central clearing an operational success is still far
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