By Peter Madigan
March 4, 2016, Risk
The U.S. Securities and Exchange Commission (SEC) has no near-term plans to issue a long-awaited mandate for the clearing of single-name credit default swaps (CDS) in the U.S., according to four sources who have met with the agency in recent weeks.
Market participants see central clearing as a way to help revive the product – by reducing capital and funding requirements for dealers – and large buy-side firms recently pledged to start clearing voluntarily. Sources say the SEC now appears to be planning to see how this voluntary initiative fares, before it considers introducing a mandate.
full article (subscription)