ECB To Discuss Establishing Central Counterparties For CDS Trading

The European Central Bank met today to discuss creating a central counterparty for credit default swaps in Europe. Representatives said a CCP for the OTC market would help mitigate risk in the volatile market, which many have said is partially

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The European Central Bank met today to discuss creating a central counterparty for credit default swaps in Europe.

Representatives said a CCP for the OTC market would help mitigate risk in the volatile market, which many have said is partially responsible for the continuing effects of the credit crunch.

Regulators in the United States have met recently with similar aims.

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