Close coordination between federal regulators and congressional leaders could lead to the launch of central clearing houses for credit derivatives in the U.S. market in a matter of weeks, The Financial Times reports.
“Regulators expect to proceed toward regulatory approvals and/or exemptions expeditiously and anticipate that one or more CDS central counterparties will commence operations before the end of 2008,” U.S. regulators from the Federal Reserve, the Securities and Exchange Commission and the Commodity Futures Trading Commission, which are currently conducting risk reviews of potential candidates, said last week.