Skip to content
CDSBench
See demo

Market structure · Global

Clearing house consults on admitting sub-investment-grade single names

Eligibility affects margin, counterparty exposure and compression for high-yield single-name desks.

Single-name clearingMarket structure

Sample story · fictional entities

What happened

Consultation

A clearing house opened a consultation on extending single-name CDS eligibility to a limited list of sub-investment-grade reference entities, with additional default-fund contributions.

As stated in: Consultation paper.

Why it may matter for CDS

CDSBench interpretation

Cleared status changes margin, counterparty exposure and liquidity for names close to distress — and how positions behave if one of them approaches a credit event.

CDSBench’s reading, not part of the source and not a statement that a Credit Event has occurred. General information, not legal or investment advice.

What is established

  • The consultation is open for comment.

What remains unresolved

  • The final list and margin model.
  • Treatment of names that become distressed after admission.

Source context

Source
Consultation paper
Status
Consultation
Context
Illustrative consultation. No real clearing house or proposal is described.

Mastermind

Assess a development like this

Mastermind structures the facts, runs rule checks, and shows the evidence and open points. Private analysis needs a paid plan.

View plansSee demo
Clearing house consults on admitting sub-investment-grade single names · CDSBench