Bob Pickel, chief executive of the International Swaps and Derivatives Association, has continued his defence of the over-the-counter credit default swap market, in the face of widespread criticism and allegations that CDS contributed to the financial crisis.
In a letter to the Financial Times, Pickel said the auction held on October 21, when counterparties to CDS trades on Lehman Brothers cash-settled their transactions, was evidence of a robust mechanism for dealing with such situations.
“Over the past 25 years, the...