New York Fed Welcomes CDS Central Counterparty Legal Analysis

Museum & Visits Regional Economy Data & Statistics Careers Blog Press Center

About the New York Fed
- About the New York Fed
- What We Do
- Who We Are
  - Bank Leadership
  - Diversity and Inclusion
- Communities We Serve
- Governance
- More About Us
- At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. We do this by executing monetary policy, providing financial services, supervising banks and conducting research and providing expertise on issues that impact the nation and communities we serve.
  
  The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
  
  Do you have a request for information and records? Learn how to submit it.
  
  Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video.
Markets & Policy Implementation

Economic Research
- Economic Research
- U.S. Economy
  - Consumer Expectations & Behavior
  - Growth & Inflation
  - Labor Market
  - Financial Stability
  - Banking
- REGIONAL ECONOMY
- RESEARCHERS
  - PUBLICATIONS
  - RESEARCH CENTERS
  - CALENDAR

Financial Institution Supervision
- Financial Institution Supervision
- Supervision & Regulation
  - Circulars
  - Regulations
- Reporting Forms & Instructions
  - Reporting Forms
  - Correspondence
- Bank Applications
- Consumer Protection
  - Community Reinvestment Act Exams
  - Frauds and Scams
- As part of our core mission, we supervise and regulate financial institutions in the Second District. Our primary objective is to maintain a safe and competitive U.S. and global banking system.
  
  The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
  
  Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
  
  The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
Financial Services & Infrastructure
- Financial Services & Infrastructure
- Financial Services & Operations
- Financial Market Infrastructure & Reform
- The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
  
  The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
  
  The growing role of nonbank financial institutions, or NBFIs, in U.S. financial markets is a transformational trend with implications for monetary policy and financial stability.
  
  The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
Community Development
& Education

Press Release

New York Fed Welcomes CDS Central Counterparty Legal Analysis

July 13, 2009

The Federal Reserve Bank of New York welcomes today’s publication of a cross-jurisdictional analysis of legal and regulatory issues facing credit default swap central counterparties (CDS CCPs) with respect to customer access to central clearing platforms. The analysis describes the present environment for protection of customer initial margin and portability of CDS positions in the event of a CCP clearing member default.

“Segregation and portability are key elements in building robust central counterparties. We requested the analysis because market participants were not making enough progress to analyze and address these buy-side issues. This is a good first step and, as we move the OTC derivatives market to central clearing, we will work to strengthen the regulatory and legal environment for buy-side clearing,” said William C. Dudley, president of the New York Fed.

The analysis was conducted independently by a group of dealer and buy-side market participants. Supervisors did not participate in the drafting and are evaluating the specific issues raised by the analysis.

Supervisors expect market participants to continue to work with regulators and other authorities to strengthen the foundations for buy-side clearing as they work to honor their commitment to start clearing customer trades by December 15, 2009.

Cover Letter to William Dudley pdf offsite
Distilled Report pdf offsite
Full Report pdf offsite
________________________________

Annexes and Appendices to the analysis:

Annex A – see Full Report p.141
Annex B – see Full Report p.142

Annex C

CME Clearing Memo pdf offsite
CME Clearing Memo Exhibit A pdf offsite
CME Clearing Memo Exhibit B pdf offsite

Appendix A

CME Clearing Questionnaire pdf offsite
Eurex Clearing AG Questionnaire pdf offsite
ICE Clear Europe Questionnaire pdf offsite
ICE Trust U.S. LLC Questionnaire pdf offsite
LCH.Clearnet Limited/NYSE Liffe Questionnaire pdf offsite

Appendix B

see Full Report p.147

Appendix C

see Full Report p.153

Contact
Media Relations
NY.Fed.Media.Relations@NY.frb.org

By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement.