Market Participants Weigh Centralized Swap Hubs to Achieve Clearing Certainty

Supurna Vedbrat, BlackRock

Peter Barsoom, COO at credit default swap (CDS) clearinghouse ICE Clear Credit, recently sat in on a panel discussion about clearing certainty in a swap execution facility (SEF) world. He says the industry shouldn’t rely on one "central magic hub" to handle all parts of every transaction. Such a hub, he says, could propel costs into the stratosphere. "If we get to the point where we've achieved certainty of execution but it costs $500 to process that trade, I'm not sure we've succeeded