Credit Derivatives Fears

摘要

The credit derivatives market continues to soar — the International Swaps and Derivatives Association's (ISDA, New York) midyear survey puts the notional amount at $12.43 trillion as of June, up nearly 48 percent in the first six months of the year and 128 percent over 2004. But such front-office trading success has its back-office price, along with the potential to cause the market to implode. A mass of outstanding trade confirmations is swamping firms' operations departments, which are ill-equipped to deal with the surge in volumes. And that has regulators worried.