About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Exchange Operators Call for CDS Clearing to Become Mandatory

Subscribe to our newsletter

The contenders in the clearing counterparty (CCP) race have indicated that they wish for credit default swap (CDS) clearing to be made mandatory. Testifying before the US Congress, the four exchange operators involved in the CCP space, IntercontinentalExchange (ICE), the Chicago Mercantile Exchange (CME) Group, NYSE Euronext’s Liffe and the Eurex derivative division of Deutsche Börse, called for the introduction of relevant legislation to make clearing mandatory.

Terrence Duffy, executive chairman of CME Group, said: “Our solution offers regulators the information and transparency they need to assess risks and prevent market abuse.”

The idea of mandatory clearing was supported by the House Agriculture Committee chairman Representative Collin Peterson. However, other lawmakers have expressed concern that multiple CCPs with different regulators would push volumes to the system deemed to be the least restrictive.

Banks at the hearing including JPMorgan, Goldman Sachs and UBS indicated that regardless of whether it was made mandatory, they would use the new clearing platforms.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Key steps in adopting cloud and SaaS delivery for enterprise data

Following in the footsteps of market data migration to the cloud, enterprise data is finding its place in the cloud alongside Software-as-a-Service apps and data delivery mechanisms. The initial aim is to achieve greater efficiency and reduced costs by moving non-core processes off premise, while retaining mission critical apps and data in-house. Moving forward, the...

BLOG

GLEIF Publishes vLEI Governance Framework to Support Digital Identities for All Legal Entities

The Global Legal Entity Identifier Foundation (GLEIF) has published its planned verifiable LEI (vLEI) Ecosystem Governance Framework and is working with capital markets regulators on how the vLEI could be a means of securing filings and reports. It has also presented the framework for review by the Regulatory Oversight Committee (ROC) of the LEI, which...

EVENT

ESG Data & Tech Summit

The inaugural ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

ESG Data Handbook 2022

The ESG landscape is changing faster than anyone could have imagined even five years ago. With tens of trillions of dollars expected to have been committed to sustainable assets by the end of the decade, it’s never been more important for financial institutions of all sizes to stay abreast of changes in the ESG data...