Testifying before the House Oversight and Government Reform Committee onThursday on the role of hedge funds in the credit crisis, five prominent hedge fund executives said they would be in favor of establishing a public exchange or clearinghouse for credit default swaps (CDS)to make that market more transparent.

“An open and transparent market for these transactions would reduce confusion and improve understanding” of CDS, said Philip Falcone, senior managing director of Harbinger Capital Partners Funds.

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