by Simon Boughey
The innovative and much-hailed protocol governing the settlement of Delphi CDS positions was in fact a compromise solution between the banks on the one side and end-users on the other, according to well-placed sources in New York.
The 14 dealers, who were the same ones called to the summit meeting with the Federal Reserve Bank of New York in September to discuss trade confirmations and novation, wanted a cash settlement process for all index, tranche and single-name trades.
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