Demand for Eurex's credit derivatives contract is strong
enough to lift volumes, which have yet to soar, according to a
report by Merrill Lynch. The credit investor survey of
institutional investors and hedge funds, illustrates the
intentions of these investors for trading the new contract.
The Merrill Lynch questionnaire found that over 80% of those
surveyed are planning to trade the newly listed contract. This
demand has yet to manifest into volume levels, which have so
far been low, peaking at 1,216 contacts on 30 March. Some
market observers suggest that many of the big banks are
refusing to trade the contact, as they seek to protect their
OTC profits (See FO Week Vol.12 No14).
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