IOSCO Issues Report on Post-Trade Transparency in CDS Market

The International Organization of Securities Commissions (“IOSCO”) published a consultation report, titled “Post-Trade Transparency in the Credit Default Swaps Market,” which analyzes the potential impact of mandatory post-trade transparency in the credit default swaps (“CDS”) market.

The report is based on a review of relevant works of academic literature and by international standards-setting bodies, as well as an examination of publicly available transaction-level post-trade data about CDS transactions before and after the introduction of mandatory post-trade transparency in certain CDS markets in the United States.

According to IOSCO, the data does not suggest that this introduction of mandatory post-trade transparency had a substantial effect on market risk exposure or market activity for those CDS products. Additionally, IOSCO stated that it believes that greater post-trade transparency in the CDS market would be valuable to market participants and other market observers. IOSCO encouraged each of its members to take steps to enhance post-trade transparency in the CDS market in its jurisdiction.

See: Consultation Report on Post-Trade Transparency in the Credit Default Swaps Market; IOSCO Press Release.

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