Trading

Swap traders to stump up fees for revamped CDS committee

The recommendations come as part of a wider review by Linklaters, a public consultation will be run by BCG

Credit default swap traders could have a fee levied on their trades as the International Swaps and Derivatives Association looks to overhaul a key part of the CDS market.

The fees would be used to help fund a revamped determinations committee, a group of market participants that decide whether a company is experiencing a “credit event” and by extension if a CDS can be paid out.

WSJ Logo