CDS market creaking?

The New York Times puts the market for credit default swaps in perspective: "Since 2000, it has ballooned from $900 billion to more than $45.5 trillion--roughly twice the size of the entire United States stock market." The fact is that this regulated market is one of the worst run in the world. Back-office problems have been its bane since the beginning. Despite major industry wide efforts, the recent volume has rendered the paper trail of many trades obscure, to say the least. If big waves of trading hit, settlements will become a nightmare. That will only add to the confusion, and likely push more banks to give up and take losses. The Times noted that in August, 14 percent of trades were unconfirmed. Look out folks.  

For more:
- here's the article