Eurex has released a white paper that appears to try to further their argument that exchanges are safer than the OTC market despite the fact that their previous OTC-like credit product launch has managed to attract not a single buyer (as I outlined in a previous post ).

I have not had a chance to read the whole thing yet, but I do think that they are flogging a dead horse. Just by adding some facts and figures and outlining the risks (which we are all aware of anyway, aren't we?) is pretty unlikely to convince the broker-dealers and their buy side clients that standardised contracts are what you need. The whole point of the OTC market is that you can buy bespoke products that fit your precise requirements of your individual portfolios and risk profiles - or am I missing the point here?

Once I have read it I may well return cap in hand and issue apologies to anyone interested enough to listen. I doubt it though....

Anyway, if you want to have a look yourself then you can find the paper here