Battle of the bulge The e-trading offensive
Electronic trading of credit derivatives is well established in the dealer-to-dealer arena; now it is the turn of the dealer-to-client arena to make the leap from phone trading to e-trading. But as Saskia Scholtes reports, there are fears that the infrastructure is not yet in place to be able to cope with large volumes of such trades
Over the past several years, the evolution of the credit derivatives market has been nothing short of extraordinary. By year-end 2004, notional volumes outstanding were approaching the $8.5 trillion mark, according to the International Swaps and Derivatives Association (Isda). The prospect of capturing a slice of this burgeoning market has prompted the launch of a number of electronic credit derivative trading platforms in recent years.
The large majority of these are broker-run dealer-to-dealer
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