The U.S. Federal Reserve is continuing its push to create a central counterparty for the credit derivatives sector with a meeting of dealers, investors and exchange executives in New York to try to speed up the process.
“The New York Fed will hold a meeting Tuesday with a small number of banks and buyside firms to discuss the progress being made toward the creation of a central counterparty for credit default swaps,” a Fed official told The Financial Times, adding a central counterparty “will help reduce systemic risk associated with counterparty credit exposure and improve how the failure of a major participant would be addressed.”