Credit derivatives: OTC CDS clearing moves ahead

EU launches consultation on derivatives; EU wants CCP for other derivatives also

Charlie McCreevy, the EU’s internal market and services commissioner

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.