Brussels, 26/03/2013 (Agence Europe) - On 26 March 2013, the European Commission decided to extend the scope of an investigation into credit default swaps (CDS) to include the International Swaps and Derivatives Association (ISDA), a professional organisation of financial institutions involved in the over-the-counter (OTC) trading of derivatives. The Commission's inquiry found preliminary indications that the ISDA may have been involved in a coordinated effort of investment banks to delay or prevent exchanges from entering the credit derivatives business. The investigation began in April 2011 (see EUROPE 10368) and is examining whether 16 investment banks used Markit, the leading provider of financial information in the CDS market, to foreclose the development of certain CDS trading platforms. The Commission says this could have been achieved through collusion or an abuse of a possible collective dominance. It is reported that the Commission has information suggesting that the ISDA took part in this alleged cartel. If it did, this would be abuse of a dominant position on the market. The opening of an investigation does not mean that the allegations are founded. (FG/transl.fl)