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The President's Working Group on Financial Markets announced a series of initiatives to strengthen oversight and the infrastructure of the over-the-counter derivatives market.
Initiatives include the development of credit default swap central counterparties, and the establishment of a MoU regarding CDS central counterparties among the Federal Reserve Board of Governors, the SEC and the CFTC.
The PWG also announced a broad set of policy objectives to guide efforts to address the full range of challenges associated with OTC derivatives and issued a progress summary to provide an overview of the results of ongoing efforts to strengthen the infrastructure of OTC derivatives markets.
“The virtually-unregulated over-the-counter market in credit default swaps has played a significant role in the credit crisis, including the now $167 billion taxpayer rescue of AIG”, SEC Chairman Cox said.
PWG press release