"First electronic Trading; Next Comes Spread Fixings" feature in the
"Wagging the Dog" cover story
IDD - November 15, 2004
This story features a discussion about the evolution of credit derivatives markets. It discusses the coming of standardization
and increased liquidity to the markets to the more recent development of electronic trading introduced by Creditex earlier
in the year. The story says that "Creditex defied predictions of the markets" that it was not ready for electronic
trading. Since the second quarter of 2004, Creditex has traded more than $100 billion in notional, mainly in credit derivatives
based on indexes. Creditex also is working on a tradable credit spread "fixing." The fixing would be based on
aggregate prices as measured by live dealer prices. The coming of a fixing would pave the way for the "next generation
of credit derivatives products," Creditex founder and CEO Sunil Hirani says in the article.
