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Charlie McCreevy: wants clearing of CDS to move to approved CCP |
Regulators’ demands that the credit default swaps markets should use central counterparties (CCPs) to clear trading in Europe gained traction last month. Two exchanges, Eurex and ICE, are ready to clear credit derivative indices but as yet clearing single-name CDS is only possible with Eurex.
LCH Clearnet had launched an initiative with Euronext Liffe last year to use the exchange’s Bclear service. But the exchange is no longer pushing ahead with the scheme. However, LCH Clearnet still has plans to clear CDS indices using its Paris arm instead. The clearer intends to launch its service later this year. CME also has plans to launch clearing services for both indices and single names.
The European Commission said on July 3 that it welcomed the steps...
