John Damgard, president of the Futures Industry Association, has appeared before the US Congressional hearing on the credit default swap market to applaud the planned transition of clearing to systems based on central counterparties (CCP).
However, the FIA president appealed to the House of Representatives’ Committee on Agriculture to resist treating the CDS market as a “jurisdictional football” between regulators.
Speaking on Monday December 8 at a hearing on credit derivatives, Damgard said the CDS market “adds value” to the US economy but that “an appropriately structured and regulated CDS clearing system would enhance that value”.
Four derivatives exchanges – CME Group, Intercontinental Exchange, Liffe and Eurex – are planning to launch CCP...