The New York Federal Reserve Bank has scheduled for Friday another meeting with derivatives exchanges and credit default swap dealers to push forward reforms of the way CDS are traded and cleared.
The meeting follows a session on Tuesday when the New York Fed met leading banks, as well as CME Group, Intercontinental Exchange and others, to seek ways to make the $55tr CDS market more stable and transparent.
A consensus is forming among regulators and market participants that the CDS market needs to adopt the central clearing counterparty model used for futures and options.
Several candidates have stepped forward to grab that clearing business including CME Group, which announced on Tuesday a partnership with hedge...