New York Federal Reserve Bank will meet several exchanges and dealers today (Tuesday October 7) to discuss ways to bring transparency and clearing to the credit default swaps market.
Intercontinental Exchange and CME Group will be among the firms meeting the Federal Reserve Bank – both are likely to push for their version of a clearing facility for the CDS market.
Clearing Corp, which is backed by a consortium of large banks and institutions and said it will launch a central counterparty for CDS by the end of this year, is also likely to participate, yet still lacks a CEO to represent the group.
CME and ICE executives have been saying for weeks that they have the proper business model for the vast over-the-counter CDS market to plug into. There are believed to...