6.18.2009 |
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IDX Capital Comments on White House Proposal for Credit Derivatives Reform
NEW YORK -- IDX Capital, an electronic interdealer marketplace for credit derivatives, issued the following statement today by its Chief Executive Officer, Jamie Cawley, in response to the Obama Administration's call for financial regulatory reform entitled: "A New Foundation: Rebuilding Financial Supervision and Regulation."
"We applaud the Obama Administration's initial efforts to reform the credit derivatives marketplace. The proposal's framework is consistent with IDX's emphasis on transparency, risk mitigation and electronic trading within the interdealer marketplace - ideals by which we have grown our business since inception in 2006.
As a wholesale 'regulated transparent electronic trade execution system for OTC derivatives,' IDX is clearinghouse-agnostic and actively working with CCPs to clear credit default swaps with proper margining, capital allocation systems and real time risk management tools.
On March 23, 2009, IDX submitted an open letter to the Securities and Exchange Commission, which called for the widespread deployment of central counterparties, and we laud the administration's efforts in concert with our own position."
Cawley went on to observe that, "We are proactively working with regulatory authorities to mitigate the threat of systemic risk and universalize transparent CDS market structure initiatives. The Administration's call for expanding central counterparties via multiple open clearinghouses is the right centerpiece for a regulatory overhaul."
Regarding federal agency oversight, Cawley commented that, "We already work closely with our regulators at the SEC and FINRA, and will build a similar collaborative effort with the CFTC as per the administration's guidance. Streamlining and centralizing oversight is good for the market. Building an open central repository for trade reporting and market data is also good for the market."
As an electronic trading platform, IDX is well positioned to benefit from the CDS market structure evolution being catalyzed by the government, institutional investor community and public sentiment.
Launched in 2006, IDX Capital, LLC is an interdealer broker of credit default swaps matching buyers and sellers for a fee. IDX Capital has been a long-time pioneer of electronic trading, transparency and market-stabilizing initiatives in the credit default swaps space.
CONTACT: Alexander Harrison of IDX, +1-212-779-1612, aharrison@idxcap.com http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/06-18-2009/0005046738&EDATE=
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