Breaking the backlog

Following a meeting last autumn between US Federal Reserve officials and major credit default swap (CDS) dealers to discuss the oft-lamented backlog of CDS confirmations, the International Swaps and Derivatives Association (Isda) rolled out its Novation Protocol to facilitate speedier, electronic communications between CDS trade counterparties when, for instance, a manager opts to transfer a CDS contract from one dealer to another. Previously, Isda's standard CDS contracts required written c