The refusal by Societe Generale to clear eligible credit default swaps through a central counterparty is frustrating some market participants. Clearing of CDS has been a key regulatory focus over the past few years, as the financial crisis laid bare the counterparty risk inherent in the market. In response, the G20 demanded regulators "speed efforts to reduce the systemic risks of CDS" and that all eligible over-the-counter derivatives be centrally cleared by the end of 2012 at the latest.
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