Korean CDS market taking off

London - 1 July 2008

GFI Group, Inc. (‘GFIG’ on Nasdaq), has brokered an interbank single-name Korean Won denominated credit default swap (CDS). The counterparties were major international banks and the trade comprised a three-year swap on 10bn KRW notional of a quasi-sovereign name.

This marks the entrance of an inter-dealer broker to the Korean-Won denominated CDS market and GFI is already quoting prices on other names.

“The emergence of an inter-dealer CDS market is a natural development for the growing and liquid local market in Korean corporate bonds” said Timothy Mariano, GFI’s head of Asia-Pacific credit brokerage, “Basel II will spur this even more with its sophisticated risk management requirements, along with new regulations allowing financial institutions to invest in CDSs”.

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