Help The Asian Credit Derivatives Market sign now

Asian CDS markets are not all they could be. Both the buy and sellside like to play games with recovery rates and CDS curves which makes trading anything a complete nightmare thanks to any unwind involving a pissing contest between either side of a contract as they try to wear each other down on what the protocol is. It is no small wonder then that:
1) Liquidity is poor.
2) Many hedge funds would rather go through the same acrimonious arguments over private transactions of larger size.

If we can all agree on default recovery rates and what protocol there is for unwinds, we can save ourselves a lot of brain damage and maybe develop this market into what we all would like it to be: liquid, deep, and lucrative.

Here is what I suggest:

25\% on everything that isn't a financial.
ISDA European/US standards for financials.
75\% on loans.

As for CDS "curves", no interpolation method should be used, only bootstrapping of live prices that have traded in the last 24 hrs. If there has never been a 4yr CDS trade point then you have no right to claim it exists. Any price points must be tradeable - a price is an executable level, not some theoretical level or hypothetical level. This isn't RMBS CDO marking-to-market circa Jan 2007.

Anyone who signs this petition should agree to trade on these terms and refuse to do so with others who do not. It is about time we all stopped complaining about poor trading volumes and liquidity and the ensuing poor primary issuance and do something about it by accepting that the market is broken and ours to fix.

Sign The Petition

Sign with Facebook
OR

If you already have an account please sign in, otherwise register an account for free then sign the petition filling the fields below.
Email and the password will be your account data, you will be able to sign other petitions after logging in.

Privacy in the search engines? You can use a nickname:

Attention, the email address you supply must be valid in order to validate the signature, otherwise it will be deleted.

I confirm registration and I agree to Usage and Limitations of Services

I confirm that I have read the Privacy Policy

I agree to the Personal Data Processing

Shoutbox

Who signed this petition saw these petitions too:

Sign The Petition

Sign with Facebook
OR

If you already have an account please sign in

Comment

I confirm registration and I agree to Usage and Limitations of Services

I confirm that I have read the Privacy Policy

I agree to the Personal Data Processing

Goal
0 / 50

Latest Signatures

No one has signed this petition yet

Information

Nina ReevesBy:
Transport and infrastructureIn:
Petition target:
Investment Banks and Funds in HK

Tags

No tags

Share

Invite friends from your address book

Embed Codes

direct link

link for html

link for forum without title

link for forum with title

Widgets