Further details on CDS clearinghouse

As we have noted before, we are big fans of the the clearinghouse idea for derivatives - particularly CDSs.  Overall, Geithner's plan is going to have a tremendous influence on the financial markets going forward and Zero Hedge is closely following any details that emerge. On the clearinghouse front , a first step was made today - the Fed demanded further details and got a behind the scenes look into the current clean up of derivatives. 

An interesting detail came out, that 9 banks are now currently using ICE and have executed $50BB in CDS trades since March 13. This is a great first step to getting widespread usage of this exchange up and running after attempts by CME and NYSE failed. A lot of pain could have been potentially avoided if the direct counterparty risk of OTCs was negated and more detailed information of derivatives was available through the exchange. We'll keep you posted as more details emerge.