CDS transparency could benefit market, says IOSCO
18 November 2014 Madrid
Image: Shutterstock
Mandatory post-trade transparency in the credit default swaps (CDS) market could benefit market participants and observers, according to a report by the International Organisation of Securities Commissions (IOSCO).
The report, titled Post-Trade Transparency in the Credit Default Swaps Market, analysed the potential impact of added transparency in the market, based on works from international standard-setting bodies and academic literature.
It also looked in to the way that transaction-level data was affected when mandatory post-trade transparency was introduced in CDS markets in the US, and included a survey about the anticipated impact among other market players.
IOSCO reached a preliminary conclusion that additional transparency would not negatively affect the market, and could actually benefit participants. The report also suggested that greater transparency in post-trade data could increase the efficacy of the G20 plans to reform over-the-counter markets.
The report is now open to public comment until February. Additional opinions will be used inform the final publication of findings.
The report, titled Post-Trade Transparency in the Credit Default Swaps Market, analysed the potential impact of added transparency in the market, based on works from international standard-setting bodies and academic literature.
It also looked in to the way that transaction-level data was affected when mandatory post-trade transparency was introduced in CDS markets in the US, and included a survey about the anticipated impact among other market players.
IOSCO reached a preliminary conclusion that additional transparency would not negatively affect the market, and could actually benefit participants. The report also suggested that greater transparency in post-trade data could increase the efficacy of the G20 plans to reform over-the-counter markets.
The report is now open to public comment until February. Additional opinions will be used inform the final publication of findings.
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