Where does industry stand as regards central counterparty (CCP) clearing for CDS?
The major derivatives dealers have signed a commitment letter with the European Commission to move clearing of European-referenced CDS onto one or more European CCPs by 31 July 2009. They are currently working on the necessary standardisation of European CDS contracts and related procedures to make this move possible. On the CCP side, two European CCPs are expected to be ready to offer their services on CDS by 31 July 2009, a third one is expected to be ready in December 2009 and a fourth one has not committed to a firm date.
