Deutsche Bank spearheads clearing house plan, reports Financial Times

The Financial Times reports that a group of investment banks including Deutsche Bank are working on plans to develop a clearing house for credit derivatives. It says the efforts to create some form of clearing house are coalescing around the Clearing Corporation, which is owned by a consortium of banks.

The article quotes Athanassios Diplas, head of global credit trading at Deutsche Bank as saying that the proposals are not intended to take credit default swaps outside the OTC realm. He adds that clearing will begin with index rather than single name credit default swaps.