The International Swaps and Derivatives Association (ISDA) has made a statement in light of the continued focus on the role of credit default swaps (CDS) in the global market place. The ISDA:

  • Recognises the concerns of national authorities in managing the volatility in their respective government debt markets and respects the role of financial regulators in taking measures to preserve the stability of their markets.
  • Is eager to work with regulatory authorities globally to address these legitimate concerns and the role of sovereign CDS in today's volatile markets.
  • Supports the many efforts of global policymakers in examining the CDS and other derivatives markets to ensure they are safe and efficient. The ISDA believes policymakers should have the supervisory tools and authority to take action should any abuses be found in the operations of any financial market.
  • Is committed to providing regulators with complete transparency for over-the-counter (OTC) derivatives, including CDS. The ISDA supports proposals that will require the use of, and reporting to, trade repositories for OTC derivatives. Demonstrating this commitment, the ISDA states that in advance of the adoption of any legislation or regulation all CDS transactions are being recorded into a central data repository.

View ISDA comments on sovereign CDS, 18 May 2010