Cleared CDS Index volumes rising ahead of June 10 date

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As we have just enhanced our SDR View tool to show Credit trades from DTCC DDR, I thought I would look into the CDS Index trading activity and how it had been impacted by the first Dodd-Frank Act mandatory clearing deadline of March 11, 2013 and the second upcoming deadline of June 10, 2013. Highlights from this analysis for CDS Index NA IG, include:

  • From May, Cleared Volumes have risen to be between $6-10 billion per week higher than Uncleared
  • This is most likely due to firms impacted by the June 10 deadline, deciding to start clearing early.
  • The percentage of Cleared trades has risen from 32% in January to around 58% now, which while a significant increase, is still much lower then the Cleared percentage observed for USD IR Swaps of 75%.

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