The leading US financial market regulators signed a memorandum of understanding on Friday November 14 to establish a framework for “consultation and information sharing on issues related to credit default swaps central counterparties”.
However, as the CDS market braces itself for the expected move to using central clearing counterparties (CCPs), two commissioners at the Commodity Futures Trading Commission publicly declared concerns about the agreement.
The CFTC, the Securities and Exchange Commission and the board of governors of the Federal Reserve System agreed to share information about regulating, overseeing and supervising the CCPs.With the collapse of financial institutions such as Bear Stearns and Lehman Brothers, pressure has...