Euronext Liffe follows suit with credit derivatives imminent

Liffe will become the latest exchange to launch credit derivatives, but insists its model will differ greatly to existing exchange listed contracts as it will be placed on its OTC system, B-Clear. The exchange revealed to FO Week that it will offer the contracts on B-Clear and they will be centrally cleared, which is an added benefit to the user, said Liffe’s head of fixed income product development, Amanda Sudworth.“We are planning to offer a very different service to those currently on offer elsewhere,” Sudworth said. “By using B-Clear it will make the contracts more akin to traditional OTC credit derivatives. There will be no central order book for our credit derivatives contract, the equity derivatives contracts on B-Clear...