Risk.Net article about TradeWeb’s new Derivatives platform for Credit Default Swaps (CDS) indices, which has captured as much as 80% of the Inter Dealer Broker market (IDB).
The platform was launched in February in advance of the new SEF derivatives regulations has quickly captured much of the traditional IDB market.
According to an unnamed US Credit Trader:
“Tradeweb launched dealer-to-dealer index CDS trading in the fourth quarter of 2012 and quickly attracted about 80% of the interdealer broker-executed traded CDX volume to its platform.
I would characterise Tradeweb as the dominant dealer-to-dealer trading platform for CDS indexes over the last six months,” says one New York-based credit trader.
Bloomberg has also launched their OTC platform. According to Ben Macdonald, Global Head of Fixed Income at Bloomberg, the company is building a cross asset class SEF, which will generate revenue by ‘driving terminal sales’, which will offset the high regulatory cost of becoming a SEF.
Thanks also to OTC Space for alerting me to story!