Pope Francis targets derivatives market in statement on ethics in finance, describing it as a “ticking time bomb”.
After Amundi became the first buy-side member of LCH’s credit default swap (CDS) clearing house in March, will this encourage other asset managers to follow suit? Writes Sarfraz Thind.
LCH seeks to grant wider clearing access to buy-side CDS traders, a move which could boost liquidity.
The exchange-like platform is part of a broader effort to revive interest in the market.
ICE’s CDS clearing houses will now clear credit default swaps for the iTraxx Australia and iTraxx Asia ex-Japan Investment Grade indices.
Central clearing could improve liquidity and confidence in a market that has significantly declined since 2008.