Robert Pickel, chief executive of the International Swaps and Derivatives Association, has appeared before US congressional committees to defend the credit default swap market against charges that it is to blame for much of the financial markets’ turmoil.
In his prepared testimony, Pickel stopped short of supporting the transition to on-exchange trading or clearing of CDS, which is being promoted by the New York Federal Reserve Bank.
“Both the role and effects of CDS in the current market turmoil have been greatly exaggerated,” said Pickel to the US Senate Committee on Agriculture, Nutrition, and Forestry yesterday (Tuesday October...