The wrong market for credit derivatives?

Eurex launched the first exchange-traded credit derivatives contracts in March. However, all the major dealers, with the exception of Societe Generale, have boycotted the contract. What does this mean for the future of the exchange-traded credit derivatives market? Mark Pengelly reports

Exchanges have long harboured ambitions to enter the fast-growing credit derivatives market. The notional principal outstanding of credit default swaps (CDSs) has soared since the start of the decade, reaching $34.5 trillion by the end of last year, according to the International Swaps and Derivatives Association. But while there has been plenty of talk about the potential for credit derivatives futures contracts - mostly from the exchanges themselves - nothing has materialised. That is, until