December 1, 2009
Central Counterparty Clearing for Credit Default Swaps: The Buy-side Perspective
Financial authorities, keen to reduce levels of systemic risk arising from potential counterparty defaults, are pushing for the introduction of central clearing for credit default swaps. If this initiative is to succeed, the buy-side, as well as the sell-side, must become fully involved. As yet, argue Peter Meechan and Bill Hodgson of Sapient, the buy-side’s involvement is still very tentative.
