Bull’s-eye on credit default swaps
The SEC last month approved a temporary regulatory exemption pertaining to credit default swaps.
The SEC last month approved a temporary regulatory exemption pertaining to credit default swaps. In essence, the SEC exemption will allow London-based LCH Clearnet Group Ltd. to operate as a central clearinghouse for transactions involving credit default swaps, which are complex investments that partly have been blamed for the current financial crisis. Incidentally, regulating such transactions is a priority among some congressional leaders, who are likely to introduce pertinent legislation this year. For more details about the SEC’s exemptive order, visit sec.gov/rules/exorders/2008/34-59165.pdf.
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