France calls for eurozone CDS clearing house

In a confidential report the French central bank has called, February 2009, on eurozone countries to rally to create a clearing house for the credit default swaps (CDS) market to “face down” the risk of the business going to London or the US, raising alarm bells over financial protectionism.

On the 19 February 2009 the International Swaps and Derivatives Association, Inc (ISDA) announced that major industry participants have committed to the use of central counterparty clearing for CDS in the European Union (EU).

EurActiv, 19.2.09: Industry commits to central clearing for credit swaps http://www.euractiv.com/en/financial-services/industry-commits-central-clearing-credit-swaps/article-179613

ISDA: Press Release, 19.2.09: Major Firms Commit to EU Central Counterparty for CDS http://www.isda.org/press/press021909.html

ESO: Background information: CDS regulation in Europe moves closer http://www.europeansources.info/record/cds-regulation-in-europe-moves-closer/

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