CDS are not ready for prime time (i.e. exchange trading)
Explanation => Market Activity Analysis Performed for the ISDA Credit Steering Committee
Data (The sample covers the nine month period beginning June 20, 2009 and ending on March 19, 2010) => Trade Information Warehouse Data Snapshot
Media Statement => DTCC Posts Data Industry Will Use to Increase Clearing of Credit Derivatives
Well not really, the FT is talking about clearing and I am talking about trading.
Look at the average number of trades per day column, not even of the same maturity or with the same terms, and it’s clear that it isn’t enough to support exchange trading.
JCK, the Financial Times disagrees with your conclusion:
“New data indicated the sovereign CDS market was relatively liquid, suggesting that clearing may be easier than some had feared.”
Link:
http://www.ft.com/cms/s/0/8121837c-6e7c-11df-ad16-00144feabdc0.html