More on coming clearinghouse for credit default swaps from Bloomberg.
Latest news from Bloomberg on bringing more transparency to the credit default swaps market: Wall Street banks including JPMorgan Chase & Co., Goldman Sachs Group Inc. and UBS AG will for the first time offer hedge-fund customers protection by backing credit-default swap trades with clearinghouses by Dec. 15. The dealers also committed to report all
From the Financial Times: More than 1,400 banks and asset managers will adopt a new “big bang” protocol, which will make it easier for investors to know what will happen to credit derivatives contracts if debt defaults occur. The US market will also introduce a standardised pricing system for CDS contracts, which have hitherto been
As the Lehman collapse showed us, the market for credit default swaps can wreak havoc on markets, since investment banks and hedge funds were making these markets in private. CDSs are insurance contracts on bonds and other credits that are a $62 trillion market, making it four times larger than the stock market, and utterly