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THE CLEARING CORPORATION
RESPONDS TO RECENT MARKET EVENTS AND THE CALL FOR A CENTRAL CDS CLEARING HOUSE
Chicago,
September 29, 2008
–
In light of recent market events and in response to related inquiries
regarding the regulation of the credit default swap (CDS) market and
the anticipated launch of a central clearing house for CDS transactions,
The Clearing Corporation (TCC) today issued the following statement:
"The Clearing Corporation is currently
in the process of establishing a wholly-owned, limited purpose, New
York trust bank that will be regulated by the Federal Reserve Bank of
New York and the New York State Banking Department and serve as a central
clearing house with respect to CDS transactions. Accordingly,
TCC is working with these regulators in order to obtain a New York State
banking license. In light of recent unprecedented events in the
CDS market and in anticipation of receiving required regulatory approvals,
TCC and its clearing participants are moving aggressively to launch
the CDS clearing platform by the end of this year. System testing,
which is proceeding according to plan and validating the design and
operation of the CDS clearing platform, is nearing completion.
TCC's launch of CDS clearing is a
global initiative to clear both US and European CDS indices, tranches
and single name liquid CDS. Both US and European participants
have been involved in the development and testing of the clearing solution."
About The Clearing Corporation
The Clearing Corporation provides clearing services for global exchange and over-the-counter (OTC) traded derivatives. As an independent derivatives clearinghouse, The Clearing Corporation is in a unique position to provide innovative and customer-focused OTC and exchange-traded derivatives clearing services. The Clearing Corporation is a stockholder-owned, Delaware corporation, now in its 83rd year of business and serves numerous clients in a variety of markets. Additional information on The Clearing Corporation is available at
www.clearingcorp.com.
Media contacts
Andy Merrill / Tripp Kyle
Finsbury Group
+1-212-303-7600
ccorp@finsbury.com
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