Europe split on swap contracts clearing

Author: | Published: 1 Mar 2009

European regulators and industry bodies are divided over how to structure a European clearing system for credit default swaps (CDSs), but lawyers say a single scheme could do more harm than good.

"Requiring that all CDSs are traded through one central counterparty clearer (CCP) could be too rigid," said Robert Falkner, partner at Morgan Lewis in London. "It might damage market flexibility and competition."

The EC...