CDS market opening up

THE Greek debt crisis and the role played by Goldman Sachs has forced legislators internationally to work on new rules to regulate the $450 trillion (£299 trillion) privately traded derivatives markets.

Governments want regulators to have access to trade information in the markets, including positions held by large counterparties.

Depository Trust & Clearing (DTCC) will lead the way, announcing yesterday that it plans to give regulators direct access to credit default swap information held in its warehouse, including data specific to a trade counterparty’s positions.

The DTCC holds data on around 2.3m credit default swap contracts from trade counterparties located in 52 countries, it said in a release.

“It is a bedrock principle of the Warehouse that all interested regulators should have unfettered access to Warehouse information,” it said.