|
|
ISDA and the European Banking Federation have committed to the use of Central Counterparty Clearing (CCP) for Credit Default Swaps in the EU.
"I welcome today's commitment from the Industry to agree to the central clearing in Europe for certain CDS which are systemically relevant, McCreevy said. “I also take note of their commitment to engage immediately in a dialogue to resolve all outstanding technical issues.”
The Commissioner had also indicated that the only other option would have been a legislative one which possibly would have taken effect much later. Recently he had welcomed initiatives of the European Parliament in that respect since the industry had not met the deadline of the end of last year.
The associations which have signed the letters to Commissioner McCreevy, are confirming their engagement to use EU-based central clearing for eligible EU contracts by end-July 2009. Signatories will work closely with infrastructure providers, regulators and the European authorities including the ECB in resolving outstanding technical, regulatory, legal and practical issues. These efforts mirror the engagement the industry has made in other jurisdictions in the interests of a globally cohesive regulatory framework.