As the financial crisis continues to develop, the call for more transparency in the swaps market is being answered. In recent weeks, regulators have started to push for a centralized derivative clearinghouse to increase transparency and reduce the settlement risks posed by CDS. As a result, the IntercontinentalExchange began setting up a new US-based credit derivatives clearinghouse and the SEC began discussing an increase in their regulatory power beyond just enforcing anti-fraud prohibitions on over-the-counter derivatives to the wider swap market. Additionally, several US states have announced their desire to join with New York in regulating certain credit derivatives as insurance. Meanwhile, the European Commission discussed how a CDS clearinghouse would be managed and Eurex and NYSE Euronext began vying for position to clear Europe's CDS market.
Please join us for a 30 minute teleconference, the next in our continuing series on the crisis, which will address such topics as:
- The movement toward a CDS clearinghouse: US, Europe or global?
- Standardization of the market
- The new regulatory horizon
- Monolines and TARP
Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.
Visit Mayer Brown's Financial Market Distress - Resources site for a compilation of links to the latest documents issued by regulatory and other governmental agencies worldwide, and additional commentary by Mayer Brown. Please bookmark it and check back often to stay informed on this rapidly evolving situation.