The recent industry study also found that competitive pressures were such that brokers did not enforce the standard CDS agreement  BIS Review 34/2006  5  and allowed counterparties to assign their side of the trade to another party without notifying the broker.
Obviously, this can significantly change the risk profile of a transaction and also make it very difficult to settle payments in a timely manner. About six weeks ago, fourteen major market participants published a letter reiterating their commitment to improving the infrastructure that supports the credit derivatives markets.