On 16th December ISDA, MFA and SIFMA’s announced that several of the Associations’ collective member firms have pledged to begin voluntarily clearing their single-name credit default swap (CDS) trades through central counterparties.
The buy-side firms that have committed to single-name CDS clearing are: AB, Anchorage Capital Group, Apollo Global Management, LLC, AQR Capital Management, LLC, BlackRock Inc., BlueMountain Capital Management, LLC, Brigade Capital Management, Citadel LLC, Claren Road Asset Management, LLC, Cyrus Capital Partners, LP, DCI, LLC., DW Partners, LP, Eaton Vance Management, Field Street Capital Management, LLC, Gracie Asset Management, Hutchin Hill Capital LP, Kingdon Capital Management, LLC, Marathon Asset Management, LP, MKP Capital Management, LLC, Och-Ziff Capital Management Group, PIMCO, Pine River Capital Management, Saba Capital Management, L.P., UBS O’Connor LLC, Zais Group, LLC.
The firms’ initiative is intended to enhance the transparency and efficiency of single-name CDS and to promote a robust marketplace that can be accessed to manage credit risk. The 24 firms will focus initially on voluntarily clearing eligible single-name CDS transactions, with the goal of migrating existing positions over time. The firms will work to develop the necessary processes internally to maximise efficiencies in booking, settling and maintaining positions.
See press release CDS PR