Six months after UBS launched their new Price Improvement Network (PIN) for trading Credit Default Swaps (CDS), they are reporting average monthly volumes have risen to $11 billion in July and August, compared with an average $7.5 billion in the four months ended June.
The platform lets customers directly post prices onto the order book where bids and offers are shown before the trade. My coverage on the platform back in February can be found in this post here
According to Paul Hamill, MD Global Credit Trading, UBS said
“We’ve taken a view of what regulation’s likely to lead to”….. PIN is a “platform that’s a safe sandbox for ourselves and our clients for how the market might look and feel,”……
UBS doesn’t have immediate plans to register PIN as a SEF, under Dodd-Frank, and plans to collect customer orders to send to a regulated SEF also offering live prices Hamill said. PIN’s future may be an “integrated partnership” with a SEF or designated contract market, he said.
The above is an extract from a Bloomberg article here