Compelling over-the-counter derivatives to be traded on exchanges could damage both OTC markets and the exchanges, according to a report commissioned by the City of London Corporation.
The report was written by Lynton Jones, former chief executive of the International Petroleum Exchange and now chairman of his own consultancy, Bourse Consult.
“There is very little evidence to suggest that [credit default swaps] contributed in any significant way to the crisis,” the report points out, adding: “The efficient way in which they were closed out during the Lehman default suggests that they are capable of being transacted safely and...