Congress Eyes CDS Regulations Amid Market Turmoil

Law360, New York (October 15, 2008, 12:00 AM EDT) -- Securities regulators have told the U.S. House Committee on Agriculture that creating central clearinghouses for credit default swaps could help rein in the largely unregulated $58 trillion market.

On Wednesday, both the acting chairman of the U.S. Commodity Futures Trading Commission and a director at the U.S. Securities Exchange Commission addressed the committee's concerns about credit derivatives, specifically CDS.

Both regulators suggested that establishing third-party agencies to clear CDS trades could minimize risk and create more transparency, which would help regulators better oversee that market....
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