Tokyo-based Aozora Bank aims to start entering credit-default swaps referenced to theiTraxx Japan credit index in the coming months. Michio Ido, head of the financial trading division, said, "We plan to trade this for our own book." Ido noted the firm intends to trade the credit index both as a speculative and hedging tool for its proprietary trading desk. Aozora began trading credit derivatives two years ago (DW, 3/24/03).
The iTraxx series is continuing to gain momentum in Japan. Aozora's move follows news fellow Japanese house Shinsei Bank received a market-making license late last month.
