The Federal Reserve Bank of New York announced earlier today that it is hosting a meeting today to "discuss industry progress toward the creation of a central counterparty for credit default swaps (CDS)." Participating in the meeting are four potential CDS clearinghouse operators (Eurex, NYSE Euronext, CME Group/Citadel and IntercontinentalExchange/the Clearing Corp), major CDS dealers and buyers, and representatives from the SEC, the CFTC and the European Central Bank. As we noted two days ago, the creation of one or more central counterparties or clearinghouses for over-the-counter CDS trades offers the potential for greater standardization and transparency in the trading of CDS contracts and may enable CDS market participants to better manage their significant, potential counter-party credit risks.