Industry sources have suggested that many of the large banks have shunned Eurex's credit derivatives contacts, amid market rumours that the major banks are looking to protect their OTC margins.
The credit derivatives contact were launched on 27 March and volumes have so far kept low, peaking at only 1,216 contacts on 30 March. A spokesman for Eurex, said, "It is fair to say that the we haven't seen a tremendous amount of trades, but liquidity was there. Many new products we have launched have also had a slow start, but first volumes are not indicative of future success."
Speaking...