The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

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. 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 that the CDS industry had taken to meet the deadline but issued a thinly veiled threat that if its demands were not met it would impose higher capital charges on banks.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree