Timing Of European Credit Default Swaps Probe Piques Interest (Wall Street Journal)

By | May 9, 2011

This story was posted last week, and although its a bit odd to repost the story that quoted Kevin on the Street, I thought the author Katy Burne did a great job of explaining how the providers of CDS market data do what they do.

The decision to review alleged preferential treatment of certain vendors by major swap dealers is curious because regulators are already working to break up the clubby world of derivatives trading by steering over-the-counter instruments onto transparent platforms with near-real-time reporting, said Kevin McPartland, senior analyst at TABB Group, in a market commentary Tuesday.

“With huge OTC derivatives reform happening around the world that presumably will open up the market to more competition, why bring an antitrust suit now?” McPartland asked. “If an oligopoly really does exist, won’t derivatives reform end it anyway?”

Read the full story here

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