We've all heard of economic stimulus, but what does it look like???
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especially using the services of Maples & Calder, at Ugland House,
July 2008 Archives
Big changes are coming to Credit Default Swaps....
20080327 NYFED - Credit Derivatives Market - an080327.pdf
The NY Fed's suggestions at a meeting earlier this year seems positive, suggestions included...
1) Central CDS clearing house(s) that may have the potential to significantly reduce counter-party risk,
2) potentially doing away with the need to tie up a Master Agreement with every counterparty....
Except that the change seems to be coming too fast, and is quite disorganized......
NY Fed is looking at the end of the year as a time frame...
The change may happen even before Financial Institutions have any kind of people or technical infra to handle the new flows... (no technology means all manual!)
There are several major forces, both established exchanges moving into CDS', CME (buying CMA), ICE, Liffe, and Market participant funded Markit (&DTCC), along with Creditex, Trioptima, and a Trojan horse, GS/JpM/Db pushing on with Clearing Corp...
It's gonna be messy! --- Hell, it's already messy!
Note:
It's interesting to see that it's been known for quite a while know,
that the Credit Derivatives Market has been in such a precarious state...
There is articles years back, and meetings upon meetings at the NY Fed
Talking about cleaning up the credit derivatives market...
Unfortunately it didn't become a reality before a melt-down...
The more I read about the credit derivatives market, the more I see that there has been almost no referee on the playing field...
I think one of the major problems with banking supervision in the
It's utterly myopic.
Cheers J
Scott
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