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GFI To Broker Options On Credit Derivatives

23 Dec 2002

GFI, a cash and derivatives brokerage house, is set to begin brokering options on credit-default swaps. Matt Woodhams, global product manager, modeling, in London, said the maturity of the credit derivatives market is spurring banks to look at more innovative products with higher margins.

The company plans to broker trades through its existing credit derivatives brokerage desk. However, he declined to predict the point at which GFI would start to hire staff dedicated to brokering credit derivative options.

Separately the broker intends to provide volatility data on credit-default swaps, which Woodhams thinks is required to grow the industry.

23 Dec 2002