(d) The right of a counterparty to terminate any contract with the debtor is suspended and

By showing who is weak and who is strong, proper stress tests would also limit counterparty risk.

So intervention is needed to formalize the CDS market and force appropriate collateralization, so that no government has to step in to rescue any counterparty.

One obvious option would be to replicate the institutional design of the SDR department by incorporating it in an agreement among the coalition countries. The Bank for International Settlements, which was the counterparty in currency swaps under the Bretton Woods par value system in the 1960s, could be the manager of this system.