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

pg30-target-gif

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here