Indeed, the Federal Reserve has already used preliminary information from the Depository Trust & Clearing Corporation’s Trade Information Warehouse to construct network graphs of the CDS market such as the one illustrated in figure 4. The data enable identification, for example, of firms, such as A and B in figure 4, that are large net sellers of protection.
Such information can play a valuable role in supervision. Moreover, the analyses for monitoring and measuring systemic risks suggested and described by Gai, Haldane, and Kapadia and by Cont, Moussa, and Santos require this kind of detailed data to gain a holistic view of systemic risk.