It was a long time coming, but the recovery in listed interest rate derivatives now seems well under way. Boosted by the Federal Reserve raising the discount rate, trading so far this year has been much busier than in 2009. But as Elise Coroneos reports, the market will not just go back to the way it was. New exchanges and clearing houses are fighting their way in, and this year is going to be lively, as competition heats up between them.
Traders are wary of being triumphant, but the slump of more than a year in listed fixed income derivatives definitely seems to be over.
In February, all three of the big exchanges – CME Group, Eurex and NYSE Liffe – enjoyed a strong recovery in trading of interest rate futures and options.
These products, like many financial instruments, were left stranded by the big retreat from risk of late 2008 and...