The credit derivatives market underwent major reform in 2009 and more reform is yet to come. The market has certainly been moved by the changes already implemented, with CDS clearing (possible, amongst other things, as a result of the fungibility created by the dynamic protection period introduced by the Big Bang) now taking hold. Of course, many challenges for the market still remain and many politicians still retain their (often ill-informed) opposition to the use of credit derivatives. But the rapid, industry driven, reform in 2009 has rightly been recognised as a step in the right direction.
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