Crunch Wakes US to CDS E-Trading
Euromoney - February 19, 2008

This story examines the efficiency of etrading in credit derivatives and discusses how the wide acceptance of etrading in Europe CDS has benefited the market.

The story extensively quotes Mazy Dar, Chief Strategy Officer at Creditex. Dar maintains that the European market has “been the beneficiary of its ability to match buyers and sellers, and to print tickets automatically. When markets are volatile, having certainty of execution is invaluable."

The story notes that etrading accounts for about 45% of inter deal trade in Europe, although this is not the case in the US. The story says that Creditex pioneered CDS e-trading in Europe in February 2004, launching the RealTime platform. Recently, during the credit crunch, the benefits of etrading were made very apparent. Now, there appears to be additional interest from trader sin the US for electronic CDS trading. According to Dar, there is very good feedback on this and people are closely examining the markets and the challenges.

Dar concludes the story saying, "Market conditions have changed, and traders are recognizing that," says Dar. "The adoption of CDS e-trading takes investment, and banks are recognizing that."

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