New DelphX ATS Data to Boost CDS Liquidity
April 11, 2016
Corporate bond trading platform operator DelphX is developing a regulated alternative trading system for trading a new securitized form of credit default swap protection known as Default Swap Receipts (DSRs) that will provide greater price transparency and “restore liquidity” to single-name CDS markets, officials say...
A More Perfect Credit Default Hedge
A new form of securities employing Smart Contract technology aims to enable sellers of single-name credit default protection to fullly compress their exposure and collateral requirements through broad mutualization and offsetting of risk.
The value in digitally transforming credit risk management
To withstand new regulatory pressures, investor expectations, and innovative competitors, banks need to reset their value focus and digitize their credit risk processes.
Pre-Trade Transparency in Over-the-Counter Markets
Fan Chen and Zhou Zhong (2012)
To understand whether and how pre-trade transparency would affect an increase of pre-trade information, which refines traders' information sets, enhances traders' bargaining positions relative to dealers'. Smaller bid-ask spreads induce more traders to participate, and hence, lead to an increase in market liquidity.
Market Structure and Costs
Pricing and Liquidity in the U.S. Corporate Bond Market
Oliver Randall (2013)
The author finds that, “Using the solution to a dynamic equilibrium model, I can rationalize the following stylized facts in the US corporate bond market: (i) a reduction in dealers’ inventories in the financial crisis of 2007-09 and sovereign debt crisis of 2011-12; (ii) a reduction in average trade size since the onset of the financial crisis and the subsequently tighter regulatory environment; (iii) the dependence of prices and liquidity on dealers’ holding costs, with asymmetric effects for buys versus sells; (iv) a generally negative relationship between transaction costs and trade size."