The money network:

The money network:

Why crowdfunding threatens traditional bank lending

China’s $1.7 trillion hangover

China’s $1.7 trillion hangover

Up to 40% of China’s $1.7 trillion LGFV loans are at high risk of default. What’s a panicking Beijing to do?

February 2008

Crunch wakes US to CDS e-trading

by Alex Chambers and Jethro Wookey

Put off by past experience, but the consensus is that its time has come.


"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"
Mazy Dar, Creditex

The level of operating efficiency attainable through electronic trading has proved invaluable to dealers. In Europe, this can be seen keenly in the credit default swap market. Creditex, which along with GFI and Icap holds a 90% share of the European inter-dealer market, executed more than $2.5 trillion in notional value of CDS transactions last year alone.

Electronic trading now accounts for more than 45% of inter-dealer transactions in Europe. "There has been a lot of progress in Europe," says Mazy Dar, chief strategy officer at Creditex. "Since early 2004, electronic CDS trading has been growing consistently."

Surprisingly, though, the US has not followed Europe in this. Electronic derivatives trading was launched in the US three years ago...


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