The Current State of the Credit Derivatives Markets

Regulatory uncertainty, understanding the economics of clearing, and deciphering capital requirements and their impact are the major themes impacting the credit derivatives market today, according to a wide range of market practitioners at the first Futures Industry Association (FIA) Expo in New York.

The 2008 financial crisis and its ongoing effects, now compounded by the Eurozone crisis, have significantly influenced the structure of the credit derivatives market. Confidence in this market has declined significantly, as some participants have disappeared and not a lot of new entrants are coming into the market. Some presenters at the FIA Expo on May 17, 2012, strongly felt that the credit derivatives market can be transformed when trades start clearing and there is more transparency and liquidity. These developments could go a long way to opening the credit derivatives market to new players and might bring back some that took a respite due to the financial and Eurozone crises of the last two years.

Also included:

• Living with Regulatory Uncertainty
• Clearing and Counterparty Concerns
• Educating the Market

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