Walt Lukken, acting chairman of the Commodity Futures Trading Commission, added his voice to calls for the over-the-counter credit default swap market to adopt exchange-based clearing.
Testifying before the US Senate Committee on Agriculture, Nutrition, and Forestry on October 15, Lukken described the CDS market as “exacerbating the counterparty and systemic risk in the financial system during this crisis”.
Political attention has turned to CDS in the wake of the unprecedented instability in many global markets. There are...