CDS markets: Derivative notions

Visions of a credit crisis spreading through Wall Street’s web of counterparty relationships keep regulators up at night - and figured strongly in their decision to rescue Bear Stearns. One solution gaining adherents - including Citadel chief Ken Griffin - is to move credit derivatives trading onto an exchange. But Griffin also proposes a more limited approach that makes better immediate sense: establishing a central clearing house. Credit index products account for a lot of CDS market volume, ...