The New York Federal Reserve will on Friday hold its second meeting this week with three groups vying to set up a central clearing counterparty for the credit default swaps market in an attempt to breathe fresh life into the initiative.

The first meeting ended without agreement on how to set up a central clearing counterparty (CCP) for the $54,000bn market. It was attended by CME and Citadel, a hedge fund; Intercontinental Exchange and The Clearing Corporation, a consortium of investment banks and broker-dealers and others.