"No, I understand the paper. I believe a central counterparty is much more likely to avert a melt-down due to increased transparency and liquidity then a daisy-chain of independent OTC counterparties. I think you'll also have a better shot of pricing collateral correctly in a central exchange than you would separate OTC dealers. Perhaps we simply disagree. That's ok. As for your belief that such a system hasn't been established for reasons other than protecting profits - you are simply wrong. Wall Street has a rich history of using predatory practices with respect to new exchanges both in the US and in Europe, using transactional flow as a threat. Belief that an OTC/CDS exchange doesn't exist for any reason other than greed is simply delusional IMHO." - Roger