Well everyone seems to agree that Swaps and CDS e-trading by the buyside is set to take off so it is logical more and more players will enter the market. Add Creditex’s Q-Wixx for single-name CDS lists and…..soon it will make the five ECN FI Cash market seem sparse! So much for consolidation.

18/04/2007 Hedge Funds To Be Targeted By Swapstream Platform

FT Alphaville reports: Swapstream, the electronic trading platform for interest rate swaps, is poised to launch a new system designed to target hedge fund customers. The UK-based company, which was bought by the Chicago Mercantile Exchange last year, currently has a platform for dealers only. It will add dollar and sterling swaps to its existing euro and Swiss franc offerings because hedge funds prefer a single platform on which they can execute broad trading strategies. The move highlights the growing influence of hedge fund traders in markets for all kinds of derivatives. It is also a sign that exchanges, such as CME, are making efforts to bring their trade processing and technological resources to bear on the huge global market for privately traded, or OTC, derivatives.