Securities houses in Taiwan, including KGI Securities, are expecting the regulator to open the gates for them to enter the domestic credit derivatives market by year-end. Jeffrey Huang, head of interest rate derivatives at KGI in Taipei, said the firm hopes to begin market making credit-default swaps as well as offer structured products including credit-linked notes early next year.
A handful of foreign and local banks, including Deutsche Bank and BNP Paribas (DW, 1/27), already offer credit derivatives in the domestic market. Huang thinks volumes should pick up next year because more participants will be involved and clients will have a greater understanding of the products.
