JP Morgan, the US investment bank, has agreed to give away its technology for pricing credit derivatives in an effort to improve transparency in the $29 trillion (€22 trillion) market, as concerns among dealers rise that a draft law circulating the US Congress could decimate trading.

The International Swaps and Derivatives Association, a trade body, said it will share the code behind JP Morgan's CDS "analytical engine," which is widely used via Bloomberg terminals by market participants to price the contracts.