Regulators from the U.S., the U.K. and Europe are in talks, trying to coordinate how they would regulate the credit default swap market.

Representatives from the Federal Reserve Bank, the Commodity Futures Trading Commission, the U.K. Financial Services Authority, the German Federal Financial Services Authority, Deutsche Bundesbank, the New York State Banking Department, the Securities and Exchange Commission, the European Central Bank and the Hungarian Financial Services Authority met on Jan. 12 at the Federal Reserve Bank of New York to share information and discussed methods of cooperation within the regulatory community, according to a FRBNY release.

These regulators, according to the release, will meet again, and are working to piece together how the central clearing house in the U.S. and in Europe will operate and how they will oversee it.

A central clearinghouse will provide transparency and stability to an otherwise opaque market by becoming the central counterparty to all transactions, market participants said.

On Feb. 19, European credit default swap dealers agreed to guarantee trades through a clearinghouse, according to Bloomberg. IntercontinentalExchange, an Atlanta-based exchange operator, is awaiting regulatory approval to launch the clearinghouse that was developed in conjunction with the bank-sponsored Clearing Corp., which IntercontinentalExchange is in the process of acquiring.

The company plans on launching the European clearing house in July. That clearinghouse will be regulated by the U.K. Financial Services Authority.

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