Buy side fuels boom in single-name CDS clearing
Ice single-name CDS volumes double year on year following switch to semi-annual rolls
Buy-side clearing of single-name credit default swaps (CDSs) is booming. Quarterly notional buy-side CDSs cleared by Ice Clear Credit have more than doubled, from $46.3 billion in the third quarter of 2016 to $108.4 billion in the first quarter of 2017.
Three banks say they have seen huge growth in clearing of the instruments among US clients.
“Last year, our client-facing single-name CDSs cleared versus our total percentage traded was just north of 40%. Year-to-date, we are at over 70%,” says
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