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Trading Credit defaults Swaps via Interdealer Brokers

Gündüz, Y.; Lüdecke, T.; Uhrig-Homburg, M.

Abstract:
Credit default swaps (CDSs) are among the most successful financial innovations of recent years, which is reflected in the rapidly expanding market. CDS trading occurs in the over-the-counter market, which relies heavily on broker intermediation to arrange with the particulars of the CDS contracts and the differences in market structure is reflected in the costs of liquidity. Moreover, the brokered and direct interdealer trading market seem to be well integrated; thus the higher liquidity costs in the brokered market may reflect the value of intermediation. Hybrid market structures, which combine voice brokerage with an electric platform, are discussed as a viable alternative to fully automated trading systems.


Zugehörige Institution(en) am KIT Institut für Finanzwirtschaft, Banken und Versicherungen (FBV)
Publikationstyp Zeitschriftenaufsatz
Jahr 2007
Sprache Englisch
Identifikator ISSN: 0920-8550, 1573-0735
KITopen ID: 1000016912
Erschienen in Journal of financial services research
Band 32
Heft 3
Seiten 141 - 159
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