International Swaps and Derivatives Association (ISDA), the biggest swap market industry body, has tentatively backed the UK Financial Service Authority's (FSA) review of credit derivatives, but the review has been criticised by some observers for not going far enough.

The FSA's paper entitled Cross Sector Risk Transfers focused on the transfer of risk between institutions in the $400bn (€436bn) risk transfer sector of the $1 trillion credit derivatives market, and how poor management of complex risk transfer could expose firms to significant risk.