US regulators have confirmed that they will permit more than one central clearing counterparty for credit default swaps, rather than choosing a single entity or consortium to provide the service. This has been one of the biggest uncertainties about the way CDS clearing would evolve, ever since the New York Federal Reserve Bank accelerated the drive towards central clearing after the collapse of Lehman Brothers.
Patricia White, associate director of the Federal Reserve Board, told delegates at the Futures Industry Association’s Expo conference...