The Clearing Corporation, a Chicago-based trade processor and guarantor, has insisted its new clearing house for credit derivatives will be in place by the end of the year, after Lehman Brothers' collapse sparked fresh concerns over risk in the over-the-counter derivatives market.
CCorp said it has almost finished testing the system, which will offer centralised clearing of credit default swaps. Most contracts in the $60 trillion (â¬42 trillion) CDS market are traded bilaterally between banks, and the complexity of transfer arrangements increases counterparty risk.
