"I believe I specifically said that moving to an exchange would not solve all the problems. That said, i do think it goes a long way towards addressing what is a severely broken market. As for the first point, I have been clamoring for all OTC derivatives to be moved to exchanges for a long time, so no disagreement there. As for the second paper, the socialization of losses would be far lower in light of heightened transparency and better collateral management than under the current regime. So I fundamentally disagree. I think it is a "forest for the trees" issue, and that the value of a transparent, vibrant, exchange-based CDS market far outweighs these costs." - Roger