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Linklaters to review credit default swap committees

The committees determine whether credit default swaps need to be paid out, but few firms are willing to join them

The Credit Derivatives Determinations Committees was asked twice in May whether Credit Suisse’s CDS should be paid out. Both attempts were rejected
The Credit Derivatives Determinations Committees was asked twice in May whether Credit Suisse’s CDS should be paid out. Both attempts were rejected Photo: Getty Images

A review into the committees that oversee credit default swaps has been launched by the International Swaps and Derivatives Association.

The review, which is being conducted by elite law firm Linklaters, will look into the structure and governance of the Credit Derivatives Determinations Committees to address the growing number of vacancies in each panel — the number of members firms involved has dropped from 26 in 2009 to 12 in 2023.

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